A large-scale grounding of its aircrafts directly affects the Mumbai-based carrier's investment partner, Abu Dhabi-based Etihad Airways
Amid a capital crunch that has led to a series of flight suspensions, including those to Dubai, cash-strapped Indian carrier Jet Airways has suspended its flights to Abu Dhabi airport, citing operational reasons.
The airline on Thursday cancelled some of its flights from Dubai to Delhi and Mumbai, due to a large-scale grounding of its aircrafts, directly affecting its investment partner, Abu Dhabi-based Etihad Airways, which owns a 24 percent stake.
“Due to operational reasons, Jet Airways has cancelled a number of flights to and from Abu Dhabi. All affected Etihad guests have been rebooked onto alternative Etihad operated flights or offered refunds as per standard policy. Guests should contact their travel agent or the Etihad Contact Centre on +971 600 555666 for further assistance,” a Jet Airways spokesperson said in a statement to Arabian Business.
It is unclear whether the flight suspension is temporary or permanent, and a Jet Airways spokesperson refused to disclose further information.
The two airlines have a code sharing agreement that sees the Indian airline carry passengers from various Indian cities to its Abu Dhabi hub for their onward journey to international destinations on Etihad flights.
Jet Airways has also grounded four aircrafts due to payment defaults to its leasing companies, taking the total number of its grounded planes to 36.
The Etihad board meeting last Monday reportedly postponed a decision on a bank-led restructuring plan that could see the Abu Dhabi airline pump additional funds into Jet Airways by way of equity and other accounts.
Last week, however, the Indian airline successfully negotiated approximately $300 million credit facility from Punjab National Bank (PNB) - a leading member of the carrier’s banking consortium - to meet its working capital requirements.
Jet Airways chairman Naresh Goyal told airline employees there will be “positive development on the company’s resolution plans” by March 18, though the airline announced it will not be able to meet interest payments to its debenture holders on Tuesday.For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.