India's Jet Airways stock falls on report of temporary close

Jet Airways aircraft are seen parked on the tarmac at Chattrapati Shivaji International Airport in Mumbai

Jet Airways aircraft are seen parked on the tarmac at Chattrapati Shivaji International Airport in Mumbai

Jet Airways is now engaged in talks with lenders to try to keep the struggling airline afloat. So we have made a decision to go ahead with our call of no-flying from April 15. Its employees are expecting to be paid their pending salaries once the fresh funding comes through.

Jet has "suspended" all flights to South and Southeast Asian nations as well as services from Chennai to Paris and Toronto, it said in a statement.

More than 1,100 pilots, engineers and ground managers will decide tomorrow whether to go on strike to demand salaries which have not been paid since January, an official from the National Aviator's Guild union told AFP. It also announced the resignation of one of its independent directors, Rajshree Pathy, from the company for other commitments.

It is learnt that the lenders are willing to infuse Rs 20 crore daily till May 7 as they expect the new investor to take control of the airline on the date and the remaining legalities and all other steps of the stake sale process can then be completed by May 31.

Passengers have been left stranded and on Friday airline staff protested at Mumbai's airport.

The Guild has requested its members to be present at the airline's headquarters, Siroya Centre, in Mumbai's Andheri suburb at 9.30 am on Monday in their uniforms.

Saddled with more than $1.2 billion of bank debt, the airline has been teetering for weeks and has yet to receive a loan of about $217 million from its lenders as part of a rescue deal agreed in late March.

An Open House will be called shortly as per the availability of the venue and the committee members, its communication added.

"Jet Airways has now suspended operations to SAARC and ASEAN destinations, as well as to Toronto and Paris from Chennai and back", the airlines said in a statement.

The airline on Sunday said it has extended the cancellation of its west-bound flights - to and from Amsterdam, London and Paris - until April 16. Airlines in India must maintain a fleet of at least 20 planes to continue to operate global flights, according to the BBC.

Abu Dhabi-based Etihad Airways, which owns a 24-percent stake in the airline, private equity fund TPG Capital, the government-owned sovereign fund National Investment and Infrastructure Fund, and ousted chairman Naresh Goyal are among those to have submitted bids, the Business Standard reported.

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