Jet Airways Suspends International Flights Amid Grounding Of Planes

Jet Airways crisis sees no end and as the lessors continue to ground more of the airline's planes, all of the international flights have been cancelled until Friday morning. And the move has been effected as its fleet size has fallen below the minimum required.

As per information to the exchanges, the air-carrier's fleet size has been reduced to just 14 and this is well below the stipulated number of 20 planes required to fly internationally. Before the company's first default in December last year, the company's fleet size included 119 planes.

Also salaries for the air-carrier's employees remain overdue since January and the carrier has also postponed payment of interest to banks as well as dues to suppliers of fuel.

On the sidelines, the founder of the company Naresh Goyal to secure funding from PNB, pledged 26% stake in the airline. Goyal has 51% stake in Jet Airways at the end of 31 December, according to the latest company filing with stock exchanges.

At present, the bidding for acquiring a majority stake of up to 75% in the airline is invited through EOI by an SBI-led consortium. Also, the bank has agreed to convert company's debt into equity by taking over 50.5% stake in the company, appoint two board members and infuse as much as Rs. 1500 crore in the company.

In Friday's trading session, the air-carrier is trading with nearly 1% loss on the NSE at Rs. 258.60.

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