News agency Reuters has reported troubled carrier Jet Airways may be forced to shut down as early as Wednesday if it did not get emergency funds.
Reuters quoted “two sources familiar with the situation” as the basis for the report. "If we don't get funds today, the airline will have to shut down immediately," a senior Jet Airways source told Reuters.
The Jet Airways Board had met on Tuesday to discuss the carrier's financial situation.
"In view of the critical liquidity position of the company, its operations have been severely impacted. The company's leadership, in consultation with its board of directors, is engaged with lenders in connection with the said emergency funding request to arrest a further deterioration of its services and minimise inconvenience to its guests," the company said in a statement. The Jet Airways board had reportedly authorised CEO Vinay Dube to seek interim funding of at least $58 million to sustain operations.
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The woes of Jet Airways could be made worse as lessors awaiting payment are attempting to de-register more of their aircraft and take them back. Reuters reported more than 20 Jet Airways aircraft had been de-registered in April. The DGCA said on Tuesday lessors are seeking to de-register seven more Jet Airways aircraft.
A year ago, Jet Airways had a total fleet of over 120 aircraft.
