As Jet Airways continue to face severe financial problems, Air India said Friday it would not accept any passengers that have got cancelled tickets of the former airline.
After Air India, now British airline Vistara has said that it will not accept Jet Airways flyers whose tickets have been cancelled. According to a report in Business Standard, Air India and Vistara have terminated ‘flight interruption manifest (FIM) agreement’ and interline ticketing agreement facility, respectively, with the airline.
An FIM is a document issued by an airline as a substitute ticket which allows a passenger to fly by another airline in case the original travel is disrupted by a schedule change, overbooking or cancellation.
As Jet Airways continue to face severe financial problems, Air India said Friday it would not accept any passengers that have got cancelled tickets of the former airline.
Generally, when an airline cancels a flight due to some exigencies, other airlines accommodate the former's passengers in their flights. The airline, which has got its flight cancelled, has to pay other airlines for passengers accommodated.
"With immediate effect and till further notice, Jet Airways (India) Limited and Jet Lite Limited documents (including FIM and endorsed/involuntary rerouted/rebooked/exchanged/reissuedocuments) are not to be accepted for travel on Air India flights," said an order of Air India dated March 1. FIM stands for Flight Interruption Manifest. Around 15 aircraft of Jet Airways have been grounded by the lessors due to non-payment.
Jet Airways is trying to raise funds for its operations as it has a debt of around Rs 8,200 crore currently.
Moreover, its pilots have been threatening action as there have been delays in salary payment.
Meanwhile, Jet Airways lenders are meeting on Thursday to vote on a resolution plan that will see lenders holding 51% stake in the airline as part of the debt gets converted into equity in the first stage of restructuring exercise to rescue the cash-strapped airline, a senior banker familiar with the development said.
In the second stage, the lenders' stake will come down to about 30% after the right issue of Rs 3,000 crore, which will see Etihad's stake going up to 40% and Naresh Goyal's shareholding falling to 22%. "But Goyal will also continue to have management control in the airline," said a banker.
The lenders' meet follows the extraordinary general meeting (EGM) of the airline on February 21, which discussed and passed resolutions allowing banks to acquire a majority stake. However, shareholders complain that the restructuring package was not discussed in detail.
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 "Air India, Vistara will not accept cancelled Jet Airways passenger tickets: Here's why")
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