The sudden massive cancellations of Jet have put travel agents and customers in jeopardy
Shaktikanta Das said in Washington, DC, that there was nothing sacrosanct about the 25 bps rate cut and that monetary policy could be well served by calibrating the size of the policy rate to the dynamics of the situation, and the size of the change itself could convey the stance of policy.
The money is expected to be disbursed by the lenders consortium led by SBI after the Jet management submits an operational plan on how it intends to use the money till May 7.
Over 70 per cent of Jet's fleet has been grounded, leading to massive cancellations.
The airline informed the ministry that it would operate 75 planes by April-end.
Of 1,400 pilots the airline has, 200 have quit in the past few months because of salary delays.
The minimum size of each bid would be $10 million and in multiples of $1 million thereafter.
According to Soumya Kanti Ghosh, chief economic advisor of the State Bank of India group, a 50 bps rate cut is a possibility, but 25 bps is more likely.
'In my 20 years, I have never seen such high rates.'
'There will be no flying unless the company pays us substantial salaries and provides a road map,' the National Aviators Guild, the pilots union, said in a message to its members.
Jet has pulled out flights from Northeast states and also cancelled its Srinagar flight, leading to reduction in capacity.
The first tranche of $31 million was due on March 11, while the second instalment of $109 million was due on March 28.
The deal will give India's largest conglomerate indirect stakes in seven airports in India and abroad.
Jet's operating fleet reduced from 103 planes in October 2018 to 35 now, leading to massive cancellations and a surge in airfares
Bids to be evaluated according to guidelines by the civil aviation ministry, following which a buyer will be selected. Transfer of control to the buyer to be effected by June-end.
While the airline is accommodating passengers on available flights, this is resulting in extending travel time and detour for customers.
Jet has proactively undertaken certain operational adjustments to its flight schedule, keeping in mind the likely, yet interim non-availability of some aircraft in its fleet in the foreseeable future.
Schuldschein is an alternative way to raise funds instead of loans or bonds and deals can run from $12 million to more than $1.13 billion. These instruments include tranches of different maturities and currencies and investors are spread across the world.
Demand for the earlier variant 737NG planes is also expected to pick up due to the grounding of MAX planes.
SpiceJet had bet its fortunes heavily on the new version of the 737 of which it has 13 planes in its fleet and another 193 aircraft on order
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