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Jet Airways debt at Rs 7,299 crore; troubled airline to withdraw from select domestic, overseas routes

FE Online

Jet Airways CEO Vinay Dube on Friday said that the cash strapped airline has taken a decision to withdraw from some of the international and domestic routes. Addressing shareholders in a conference call, he also said that the net debt of the troubled airline stands at Rs 7,299 crore as of end December, 2018.

He also said that the airline operations will be hit in January-March due to closure of Mumbai Airport runway. Some loss-making ATR routes have been removed and the airline is migrating its capacity from wide-body to B737s, he added.

Even as the aviation sector continues to be challenging for the players including Jet Airways, the airline airline will continue to make steady progress for operational and financial turnaround, the company management said.

The bank-led provisional resolution plan has been discussed exhaustively will all the stakeholders of the airline prior to the approval by board, the company management also said. Any further details would only be shared after all the stakeholders approve the plan, he added.

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The revenues of the airline from code sharing have surged by 12.8 per cent on a year-on-year basis while fuel prices in the third quarter were higher than 29 per cent year-on-year, the airline management said.

Jet Airways is indebted to employees who have worked tirelessly for the customers despite the recent difficulties, the company added.

Meanwhile, Jet Airways board on Thursday approved a debt resolution plan that mainly includes infusion of funds, restructuring of debt and monetisation of assets. The lenders-led by State Bank of India (SBI) would become the largest shareholders post the debt recast, according to the plan.

Board of Directors, in its meeting held today, inter-alia, considered and approved a BLPRP, received from the State Bank of India CSBI ), appointed as lead lender by consortium of domestic lenders ( Lenders ), Jet Airways said in the exchange filing.