Motilal Oswal
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Motilal Oswal
Aviation

Jet Airways crisis: 10 things you need to know

Updated : 2019-05-09 15:30:28

The fate of cash-strapped Jet Airways will be decided on Friday, as the lenders led by the State Bank of India (SBI) is set to finalise its winning bidder. On April 17, the airline temporarily suspended its operations, leaving the future of around 20,000 staff uncertain after it failed to keep its aircraft afloat, find an investor, repay dues to lessors and furnish salaries to their employees. The SBI-led consortium of domestic lenders to Jet Airways has already sought bids for the ailing airline. The distressed airlines started suffering losses and could not pay the employees from last December.

India's first private carrier Jet Airways has more than Rs 8,000 crore of debt. The airline was hurt with rising competition and spike in the ATF fuel prices. (Image: Reuters)
India's first private carrier Jet Airways has more than Rs 8,000 crore of debt. The airline was hurt with rising competition and spike in the ATF fuel prices. (Image: Reuters)
The entry of budget and no-frills carriers such as IndiGo and SpiceJet in the mid-2000s triggered a price war in the sector. The budget entrants offered cheaper fares which led to consumers opting for these airlines instead of full-service carriers such as Jet Airways. (Image: Getty Images)
The entry of budget and no-frills carriers such as IndiGo and SpiceJet in the mid-2000s triggered a price war in the sector. The budget entrants offered cheaper fares which led to consumers opting for these airlines instead of full-service carriers such as Jet Airways. (Image: Getty Images)
The consistent rise in the aviation turbine fuel (ATF) prices and the 30 percent provincial added to the already-increasing operational costs of the airline. (Image: Getty)
The consistent rise in the aviation turbine fuel (ATF) prices and the 30 percent provincial added to the already-increasing operational costs of the airline. (Image: Getty)
Soon enough, Jet Airways was unable to pay salaries to its employees. Jet pilots went on a strike and have now approached the Supreme Court to direct SBI to provide the assured interim finance for restarting operations, suspension of which has affected the livelihood of around 22,000 employees. (Image: Reuters)
Soon enough, Jet Airways was unable to pay salaries to its employees. Jet pilots went on a strike and have now approached the Supreme Court to direct SBI to provide the assured interim finance for restarting operations, suspension of which has affected the livelihood of around 22,000 employees. (Image: Reuters)
Not only this, the airline grounded most of its aircraft thereafter. Jet had a fleet of more than 120 aircraft but more than half have been deregistered and repossessed by lessors as the airline was unable to repay the dues. (Image: Reuters)
Not only this, the airline grounded most of its aircraft thereafter. Jet had a fleet of more than 120 aircraft but more than half have been deregistered and repossessed by lessors as the airline was unable to repay the dues. (Image: Reuters)
The series of bad events led to the airline temporarily shutting down its operations in April. The airline said it will be back in business once it finalises a deal with a suitable investor. (Image: Reuters)
The series of bad events led to the airline temporarily shutting down its operations in April. The airline said it will be back in business once it finalises a deal with a suitable investor. (Image: Reuters)
Before the airline shut down its operations, founder Naresh Goyal stepped down from the company. It was reported that many investors had urged that Goyal should not be a part of the active management of the airline. (Image: Reuters)
Before the airline shut down its operations, founder Naresh Goyal stepped down from the company. It was reported that many investors had urged that Goyal should not be a part of the active management of the airline. (Image: Reuters)
Etihad Airways, which had owned a 24 percent stake in Jet Airways, was the first investor option to buy a controlling stake in the airline. However, the airline still went ahead with inviting bids. (Image: Reuters)
Etihad Airways, which had owned a 24 percent stake in Jet Airways, was the first investor option to buy a controlling stake in the airline. However, the airline still went ahead with inviting bids. (Image: Reuters)
The airline has received bids from entrepreneurs, startups, other investors and Naresh Goyal, himself. (Image: Reuters)
The airline has received bids from entrepreneurs, startups, other investors and Naresh Goyal, himself. (Image: Reuters)
Private equity firm TPG Capital, Indigo Partners, National Investment and Infrastructure Fund (NIIF) and Etihad Airways had been shortlisted to submit their bids after they gave their EoIs. (Image: Reuters)
Private equity firm TPG Capital, Indigo Partners, National Investment and Infrastructure Fund (NIIF) and Etihad Airways had been shortlisted to submit their bids after they gave their EoIs. (Image: Reuters)
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