Jet Airways Crisis: Pilots To Go On Strike From April 1; Etihad To Separate Ways

The Logical Indian Crew India

March 21st, 2019 / 12:03 PM

Image Credit: Wikimedia

Jet Airways faces more crisis as the international airline company Etihad Airways wrote to State Bank of India (SBI) stating its withdrawal from the airlines. Etihad Airways owns 24 per cent of the stake of Jet Airways. On the other hand, pilots have declared that they would go on strike from April 1, if their salary arrears are not cleared. On Tuesday, Etihad Airways wrote a formal request to State Bank of India (SBI) asking the bank to buy its shares.

“Etihad wants to exit Jet completely. Any decision now has to come from SBI,” a source said. Etihad CEO Tony Douglas is believed to have discussed this with SBI chairman Rajnish Kumar on Monday.

When contacted, Etihad repeated its earlier statement that it was working with Jet. “As a minority shareholder, Etihad is working closely with Indian lenders, the company and key stakeholders to facilitate a solution for Jet Airways,” The Economic Times reported. National Aviator’s Guild — the organisation representing Jet’s domestic pilots — threatened to stop flying and go on a strike from April 1, if there is no resolution to the ongoing issue and if the arrears of salary are not settled till the end of March. The organisation represents around 1,000 pilots of the airline.

They may not extend help

Etihad’s proposal to pull out its stake has worsened the financial crisis of Jet Airways. According to the memorandum of understanding, Etihad was to infuse Rs 1,600-1,900 crore for a stake of 24.9%, just below the 25% threshold that triggers an open offer.

Jet Airways had asked Abu Dhabi-based Etihad Airways to grant financial help of Rs. 750 crore. Due to operational reasons, Jet had grounded many flights. Many passengers travelling to and with Jet Airways had faced problems. Alternative flights have been rescheduled for them or their ticket money has been refunded, a spokesperson of Etihad said.

Jet-Etihad is the largest combine in terms of flying people from and to India.

Taking notice of the issue, Suresh Prabhu tweeted, “Directed Secretary @MoCA_GoI to hold an emergency meeting on grounding of flights by Jet Airways, Advanced Bookings, Cancellation, Refunds and Safety Issues if any. Asked him to get a report on Jet compliance issues immediately from DGCA @Jayantsinha.”

It has become more difficult for Jet Airways to sustain itself in the aviation industry due to ever-growing competition among companies like Indigo, GoAir and Spicejet offering flights at cheaper prices. Jet Airways has grounded more than 60 planes and cancelled several flights. This accounts for more than half of its flights.

Also Read: With Boeing 737 Max 8 Planes Grounded, India’s Aviation Industry Is Having A Tough Time


Written by : Shrishti Verma (Intern)

Edited by : Poorbita Bagchi

Share your thoughts..

Related Stories

Jet Airways Shut Down

Zero Cash & No Fuel, Jet Airways May Shut Down Soon: A Timeline Of Events

Cash-Strapped Jet Airways Cancels All International Flights, Now Operating With Only 9 Planes

Jet Airways Offers Leave

Jet Airways Crisis: Pilots Offered Leaves Without Pay; 200 Quit In Past Months For Salary Delay

Naresh Goyal Steps Down

Cash-Strapped Jet Airways’ Founder Naresh Goyal Steps Down From Board

SBI Seeks To End Jet Airways’ Financial Crisis Before End Of March

Jet Airways Crew Forgets To Maintain Cabin Pressure, Passengers Suffer Nose & Ear Bleeding Mid-Air

Latest on The Logical Indian


Contempt Notice Issued To Rahul Gandhi For Attributing “Chowkidar Chor Hai” Remark To Supreme Court

Get Inspired

A Daughter Like No Other: Girl Donates 65% Of Liver To Her Ailing Father To Save His Life


Situation In West Bengal Like Bihar 15 Yrs Ago, Says EC Special Observer Over Violence In State


“Will Popularise Cow Urine After I Win The Elections,” Says Sadhvi Pragya


How CJI Being On Bench That Judged The Allegations Of Sexual Assault Against Him “Threatens The Judiciary”


SC Orders Rs 50 Lakh Compensation To Gujarat Riots Victim Bilkis Bano; Know About Her


Stories that deserve attention, delivered to your inbox!

Handpicked, newsworthy stories which deserve the attention of a rational generation.