Jet Airways Aircraft Seized in Amsterdam For Non-Payment of Dues, Passengers Stuck

Jet Airways receives legal notice over unpaid salaries

Jet Airways receives legal notice over unpaid salaries

Jet Airways' troubles seem to have caught up with its passengers at Schiphol airport, 6,374 km away.

The aircraft had been due to depart Schiphol at 11:25am this morning on its way to Mumbai, but the flight had yet to take-off (at the time of publication, 15:30 CEST) because of the aircraft seizure.

Indian Oil Corporation (IOC) has stopped fuel supply for the non-payment of dues, while a European cargo agent seized one of its wide-body planes at the Amsterdam airport over payments.

Last week, the International Olympic Committee had stopped fuel supply to Jet Airways for some time before restarting the same after receiving assurances over payment of dues.

However, the fuel retailer did not divulge details about any payment or assurance made by the cash-strapped airline over due payments.

Nonetheless, industry insiders said that the lenders of the airline might have made a part-payment towards the dues.

In a corrigendum to its original offer document, lenders said that bidders can either acquire the company or restructure existing facilities and infuse funds by way of loans or acquire stake up to 75% by either subscribing to new issue of equity shares or buy them from existing investors.

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Lessors to Jet Airways applied to the Directorate-General of Civil Aviation (DGCA) to de-register more aircraft leased to the beleaguered airline.

Civil Aviation Secretary Pradeep Singh Kharola said last week that only 26 aircraft are operational while Jet Airways last month said it is now flying 35 planes.

Last month, creditors injected $218 million of "immediate funding support" into Jet Airways as part of a debt resolution plan.

The airline apparently owns 16 aircraft out of these 26. Mumbai is the largest base for the airline and it operates maximum flights from the city.

Lenders to Jet Airways have agreed to sweeten the terms for sale of the troubled airline and have extended until April 12 the last date for potential bidders to submit their expressions of interest (EoIs).

Due to cash crunch, the airline has been paying only part salaries to its over 16,000 employees which forced a section of its pilots on Tuesday sending a legal notice to the management which is now being headed by the lenders led by State Bank of India.

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