A major crisis was averted at the cash-starved Jet Airways (India) Ltd. today after Indian Oil Corporation Ltd. resumed fuel supplies to the airline, which was halted earlier in the day due to non-payments, according to people in the know.
The supply, which the state-run oil marketer stopped around noon was restored at around 5 p.m. after the airline assured of payment of dues, the people PTI.
Earlier in the day, Jet Airways faced operational disruptions across major airports when IOC refused to refuel its planes without clearing the outstanding amount.
A spokesperson for Jet refused to comment.
A consortium led by State Bank of India will soon take over the management of the airline under a debt-recast plan.
The once-second largest airline has drastically curtailed its operations since last month following severe cash crunch and is operating only 26 out of 124 planes in its fleet.
Under the new management structure banks will own 50.1 percent in Jet Airways by infusing an emergency fund of Rs 1,500 crore, which will then be converted into equity for a notional value of Re 1 ashare.
The airline, however, has yet received the much-needed fund due to some procedural glitches, according to the bankers.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
