The collapse of Jet Airways, once India’s largest airline, was evident by February 2019. By then it was loaded with unserviceable debt of about Rs. 15000 crores, of which it owed Rs. 9000 cr. to SBI, with an exposure of over Rs. 2000 crores and the rest owed to aircraft lessors, vendors, employees and creditors. In 2019, February and March were election season, and the government could not have politically afforded the headlines of closure of a national airline, with 22000 direct jobs at stake. Thus despite the clear writing on the wall, of the closure of the airline, the banks led by the then SBI chairman, put up a facade that efforts were being made to revive the airline and that it would be revived, with a number of investors keen to acquire the beleaguered airline. In this episode of the Business Tit-bits, our Business Editor Mr. Akhilesh Bhargava shares his take.
#JetAirways #SBI #ED #NCLT
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