According to the sources, some of the flights operating from Delhi, Mumbai, Pune, Chennai, Hyderabad, Port Blair and Bengaluru were affected
The situation for debt-ridden Jet Airways seems to be getting more difficult as it was forced to ground three of its Boeing 737 planes on Monday due to non-payment of dues to the lessors.
The development had a cascading effect, leading to cancellations of about 19 flights across the country, causing inconvenience to hundreds of passengers, sources said, adding that this takes the number of planes that have been grounded in the past couple of days to five to six.
According to the sources, some of the flights operating from Delhi, Mumbai, Pune, Chennai, Hyderabad, Port Blair and Bengaluru were affected. A Jet Airways spokesperson did not comment till the time of going to press.
The airline's management is believed to be in discussion with the lessors and vendors over the delayed payments and some of the lessors have even started the process of reclaiming their planes. The financial troubles also forced the airline to halt deliveries of six Boeing 737 Max planes that were due by March.
Mumbai-based Jet Airways (India) in a regulatory filing on Monday had indicated that it will seek approval from its shareholders to convert a portion of its debt into equity. The move will allow the debt-laden airline to issue fresh shares to lenders for a much-needed financial lifeline though it may result in a hefty drop in the holdings of promoter Naresh Goyal.
At present, Goyal and his family hold 51% stake in the carrier while the Gulf-based airline Etihad owns 24%. In an extraordinary general meeting (EGM) which is scheduled to be held on 21 February, the shareholders would vote on a proposal to raise its authorised share capital from Rs 200 crore to Rs 2,200 crore through a special resolution. Further, Goyal and Etihad, which are expected to make a fresh investment, will be able to do it without allowing a mandatory open offer.
Earlier this month, Etihad Airways had offered to increase its stake in the airline up from 24% but sought exemption from market regulator Securities and Exchange Board of India (Sebi) from making an open offer and preference pricing. As per the regulatory mandate, a company has to make an open offer, in case their shareholding in a listed company goes beyond a certain threshold. In response, Jet Airways has said discussions with various investors were on as a part of its turnaround plan.
As per reports, several investors including Tata Sons, private equity firms and Etihad have shown interest in the struggling airline.
ROUGH SKIES
An extraordinary general meeting is scheduled to be held on 21 February
19 – Flights Jet Airways had to cancel across the country
51% – Promoter Goyal’s stake in the airline
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