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Jet Airways To Fly Again, Gulf-Based NRIs “Ready To Secure Emergency Funds”

"We are ready to get investors from Qatar and Dubai to bail out Jet from its financial crisis so it could fly high again in the next 240 hours"

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"The game plan was to get Goyal step down from the top executive post. He resigned to save the airline but not to ground it temporarily or permanently" Pixabay

A group of Gulf-based NRIs are ready to raise emergency funding to enable debt-ridden and cash-strapped Jet Airways fly again, said a potential investor on Wednesday.

“We are ready to secure emergency funds from NRIs based in Dubai, Saudi Arabia and Qatar and Gulf investors to meet Jet’s operational needs and fly again in 10 days,” Saudi-based Gold Tower Group’s Chief Executive Mohammed Nagaman Lateef told IANS here.

The Dammam-headquartered Gold Tower Group is a major construction firm in the Arabian kingdom.

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The NRIs are also keen to know why the SBI backed off from giving the airline contingency funds after assuring them, provided Goyal resigned. Pixabay

The other Gulf-based Indian expats ready to raise fund and invest in the airline are Dubai-based Indian Economic Trade Organisation President Asif Iqbal, Saudi-based Icon World and Sandalwood Director Aftab Khan and Aryan Hospitality and Aleef Aviation Chief Executive Mazhar Nawaz, he said.

“Though I have tweeted on April 19 to Jet’s official handle asking its founder-chairman Naresh Goyal and its Chief Executive Vinay Dube to contact me for emergency funding, there is no response yet from either even after five days,” said Lateef.

Expressing surprise that a 25-year-old largest private airline with 16,500 employees had to suspend operations since April 17 after a consortium of lenders led by the State Bank of India (SBI) rejected its plea for emergency funding, Lateef said the NRIs and potential investors have no other vested interest than to get Jet off the ground.

“We fail to understand how a successful and profitable airline could suddenly incur losses and accumulate over Rs 8,000 crore debt. What went wrong, how and why. We want Goyal and Dube to explain for due diligence before raising funds,” he said.

Alleging that there was a deliberate national or international conspiracy to ground and shut down Jet so that its competitors or rivals, including budget carriers could flourish, Lateef alleged that some vested interests have been working against the airline.

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“We are ready to secure emergency funds from NRIs based in Dubai, Saudi Arabia and Qatar and Gulf investors to meet Jet’s operational needs and fly again in 10 days” Pixabay

“The game plan was to get Goyal step down from the top executive post. He resigned to save the airline but not to ground it temporarily or permanently,” he said.

Also Read: A Two-Day Worth Witnessing Indian Food and Film Festival in Jeddah

The NRIs are also keen to know why the SBI backed off from giving the airline contingency funds after assuring them, provided Goyal resigned.

“We are ready to get investors from Qatar and Dubai to bail out Jet from its financial crisis so it could fly high again in the next 240 hours,” added Lateef. (IANS)

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Jet Informs Employees, It Can Not Provide Mediclaim

"In the absence of any emergency funding from the lenders or any other source of funds forthcoming in the near future, we find ourselves facing a situation where we are not able to fund the premium of our Group Mediclaim Policy,"

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Lenders of Jet Airways led by SBI are currently in the process of selling the airline to recover their dues of over Rs 8,400 crore. Pixabay

Faced with severe liquidity crisis, grounded Jet Airways has informed employees that it will not be able to fund the premium of Group Mediclaim Policy and advised them to take medical cover of their choice.

IANS first reported on April 27 that Jet employees face uncertainty over extension of their Mediclaim provided by the company.

“In the absence of any emergency funding from the lenders or any other source of funds forthcoming in the near future, we find ourselves facing a situation where we are not able to fund the premium of our Group Mediclaim Policy,” the airline Chief People Officer Rahul Taneja wrote in a letter to its employees.

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We are working with them proactively to find opportunities to revive our beloved airline. Pixabay

He said that the Group Mediclaim Policy lapses on the midnight of April 30, 2019, adding that “these circumstances are not of our doing and much as we would wish to do things differently, we are left with little choice”.

Taneja, however, sounded optimistic and gave hope about revival of the airline.

Also Read: Rajasthan’s Pokhran Village People Near Nuclear Test Site Cries For Help

“I must also state that we have not yet given up on our efforts and continue to engage with the lenders and support them in the bid process. We are working with them proactively to find opportunities to revive our beloved airline. As soon as we have more clarity on this matter, we will share the same with you,” he said.

Lenders of Jet Airways led by SBI are currently in the process of selling the airline to recover their dues of over Rs 8,400 crore. Private equity firm TPG Capital, Indigo Partners, National Investment and Infrastructure Fund (NIIF) and Etihad Airways are in the race to buy a stake in the grounded Jet Airways. (IANS)