Jet Airways has lobbied the Narendra Modi government for the same favours and benefits that were extended to SpiceJet when the low-cost airline was trying to extricate itself from a financial mess in 2014.

Jet Airways chief executive officer Vinay Dube told a television news channel that during a recent hour-long discussions with finance minister Arun Jaitley, he had made a strong pitch for government intercession to stave off the crisis that the full-service airline had flown into.

“We requested help from the government within the purview of what they have (done earlier). If you remember the SpiceJet case a little while ago, the government interceded by providing help with fuel companies, providing help with deferment of airport fees,” said Dube who took over the running of the faltering airline 18 months ago.

The oil companies had threatened to turn off the jet fuel spigots at least thrice in as many months after Jet Airways failed to pay its dues, sparking flight cancellations and severe reputational loss for a once-pedigreed airline.

“If you look at how healthy SpiceJet is today, one would think it was the right decision for the travelling public. All we are saying is that we deserve the same. We have a 25-year history; we had the capacity three times that of SpiceJet back then.

“I would say we deserve it; our people deserve it; the travelling public deserves a similar type of government help and intervention to be able to resurrect Jet Airways,” told the channel.

SpiceJet boss Ajay Singh is regarded in aviation circles as someone who is very close to the current dispensation and received a lot of help from it when he took control of the low-cost airline from the Marans.

It may be recalled that the government had stepped in when SpiceJet was in the brink of shutdown by requesting oil companies to extend credit for up to 15 days and also urged airports to give a 15-day grace period to make payments.

Ajay Singh, chairman and managing director, subsequently acquired majority control of SpiceJet and turned it around. He also successfully beat back a Rs 1,323crore claim for damages filed by Kalanithi Maran and his KAL Airways. Last July, a three-member arbitration tribunal rejected Maran’s plea for damages after Ajay Singh had refused to issue warrants to the former owner in violation of a share purchase agreement.

The huddle

Dube’s huddle with Jaitley took place last Saturday. Maharashtra finance minister Sudhir Mungantiwar, civil aviation secretary Pradeep Singh Kharola, Jet Airways’ chief financial officer Amit Agarwal and representatives of pilots, engineers, cabin crew and ground staff unions were also present.

Dube said the airline wanted the lenders to release about Rs 1,000 crore – a part of which would be used to pay at least a month’s salary to the 26,000 employees who, he said, ranked among the most precious assets of the airline.

The Jet Airways CEO said the airline was in constant talks with the lenders and the discussions have centred on the need to get the airline flying again – even if only in a skeletal framework — because that is what makes economic sense for both the lenders and the airline.

Meanwhile, the Jet Airways stock ended a three-day losing streak, and rose almost 10 per cent on the bourses today on value buying.

The Telegraph