The sudden massive cancellations of Jet have put travel agents and customers in jeopardy
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.
With passenger growth pegged at 14 to 15 per cent, airport infrastructure could be a make or break business for both new players and incumbents.
Over 70 per cent of Jet's fleet has been grounded, leading to massive cancellations.
Naresh Goyal, after being ousted with his wife from the board last week, and with his shareholding halved to 25 per cent, can still make a comeback by partnering a new investor and win back majority control.
The airline informed the ministry that it would operate 75 planes by April-end.
The three options are - a one-time settlement, restructuring of loans and of course go to IBC.
Of 1,400 pilots the airline has, 200 have quit in the past few months because of salary delays.
'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.
Switching to a damage-control mode, bankers and government officials claimed that Jet Airways wouldn't fall even if Etihad refuses to back the resolution plan and exits.
Etihad said it would not participate in the rights issue or infuse fresh funds under the current terms and conditions of the resolution plan
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.
Demand for the earlier variant 737NG planes is also expected to pick up due to the grounding of MAX planes.
Jet and Etihad have already agreed upon a Rs 4,000-crore interim financing plan according to which Etihad will put in Rs 750 crore either on its own or from an offshore or onshore lender, and a matching amount will be provided by the Jet lenders.
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