Jet Airways planes are seen parked at the domestic airport, in New Delhi, Friday, April 12, 2019. (Source: PTI)

Former Aviation Tycoon Blames Lenders For Jet Airways’ Crisis 

Former Damania Airways Promoter Parvez Damania accused the lenders of not assisting Jet Airways (India) Ltd., forcing it to suspend its flight operations.

The former aviation tycoon said that it was not only “terrible” for the company and its employees, but also for the entire sector. The developments coming from the cash-strapped carrier are creating a doubtful situation in the airline industry, Damania told BloombergQuint. “India was one of the fastest-growing aviation markets in the world. The present situation of Jet Airways makes the whole story doubtful.”

Also read: DGCA Said To Seek Credible Revival Plan From Debt-Laden Jet Airways

Damania further questioned the procedure followed by the lenders while handling the situation. “The whole situation is a fiasco. It is totally confusing on how State Bank of India handled it and there are several questions that arise.”

They made Naresh Goyal resign. The lenders should have got the airline’s operation in a proper shape if they were planning to sell or market it. Now, there is nothing left to buy since all the properties are attached. Therefore, it is confusing about who is going to be the bidder and what is he going to buy.
Parvez Damania, Former Damania Airways Promoter

Also read: Ailing Jet Airways Slumps 34% as Cash Crunch Grounds All Flights

The cash-strapped airline, which was once the country’s largest carrier by market value, suspended all its flight operations from today. This after the SBI, on behalf of a consortium of lenders, rejected Jet Airways’ request for immediate interim funding.

Also read: What Jet’s Collapse Says About India

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