The Indian Oil Corporation (IOC) has resumed aviation fuel supply to Jet Airways after the airline assured that it will clear its dues.
Earlier on Friday, Indian Oil Corporation (IOC) said that it had stopped supplying fuel to Jet Airways, deepening the woes of the beleaguered carrier as it battles for survival.
IOC, the country’s largest commercial oil company, had on Friday (April 05) stopped fuel supply to the struggling carrier Jet Airways for non-payment.
The already cash starved Jet Airways shall soon become fuel starved. The IOC, the public sector oil marketing firm, stopped supplying fuel to the crisis ridden carrier from 12 noon Friday.
Response to a query sent to Jet Airways on this issue was awaited.
Jet Airways, in which SBI-led consortium of lenders is set to take management control under a debt-recast plan, has drastically curtailed operations with a fleet of 26 planes.
Lender banks of Jet Airways had said on Thursday that they will soon invite bids to facilitate sale of stake in the troubled airstrike. The bank released a press release and said that the bids will open on April 6 and close on April 9.
Even this step could not prevent the airline from getting grounded.
On March 25, Jet Airways board had approved a resolution plan formulated by SBI-led domestic lenders, under which had agreed to infuse an emergency funding of Rs 1,500 crore into the airline, and convert the same into equity worth 50.1 percent for a notional value of just Re 1 each share.
The airline, however, has not yet received the much-needed funds. The lenders said late on Thursday they intended to push forward with their plan but offered no clarity on the interim funding.
Lessors to Jet Airways are planning to ask India’s aviation regulator to de-register more planes leased to the airline. Thus, the so-called planned bailout of the debt-laden company has not been able to assuage their concerns.
Jet Airways said that it is operating on “curtailed schedule” due to drastically reduced fleet strength. Now, even those planes can’t fly without fuel.
The lenders say that if the current resolution plan does not work then they will consider ‘other options’.
Some of the options that the banks can consider is declaring Jet Airways as bankrupt and taking it to National Company Law Tribunal (NCLT) for resolution under the Insolvency and Bankruptcy Code (IBC).
Jet Airways is currently struggling under huge debt because of which it is not able to pay salaries of its employees including pilots. Pilots of Jet Airways have written to aviation ministry and requested it to ensure that the airline pays their dues along with interest on their payment.