India's stricken Jet Airways appeared to be edging closer to collapse Monday after lenders failed to take a decision on whether to release crucial funds to keep the debt-laden carrier flying. Thousands of passengers have been stranded in recent days after the airline, which has debts of more than $1 billion, cancelled all international flights as it cannot pay its bills.
Jet CEO Vinay Dube said in an email to staff Monday that the cancellation of all international flights was being extended to Thursday because an emergency cash injection had not yet been made available. "As you are aware, we have been working with the lenders to secure interim funding for our operations. The interim funding has not been forthcoming thus far..." he wrote.
Dube added that the board of Jet would meet on Tuesday to discuss "the next steps forward". The airline has only seven jets left after dozens of others were seized by creditors in recent weeks. Pilots, engineers, and ground staff who have not been paid for three months have said they will strike if the banks do not inject emergency funds.
They had planned to strike from Monday but postponed the action until after the bankers' meeting. The State Bank of India-led lenders took control of Jet last month, pledging to give $218 million of "immediate funding support" as part of a debt resolution plan.
But most of the funds have not been released and Jet, which is now operating a skeleton service, needs the money desperately or could go bust within days, Indian media reports say.