(Reuters) – Jet Airways plans to extend its suspension of international flights until Thursday having not received any interim funding from lenders, the company said in a letter to employees on Monday.

The airline, saddled with some $1.2 billion of bank debt, has been struggling after failing to receive a stop-gap loan of about $217 million from its lenders as part of a rescue deal agreed in late March.

In the staff letter, seen by Reuters, Chief Executive Vinay Dube said: “The interim funding has not been forthcoming thus far, and as a result of this we have extended cancellation of international operations through Thursday, April, 19.”

Dube said management would update the airline’s board on the matter at a meeting scheduled for Tuesday and would seek guidance on the next steps forward.

Jet, which also owes vast sums to lessors, suppliers, pilots and oil companies, has been losing planes in recent weeks as lessors scramble to de-register and take back their aircraft, even as Jet’s lenders have sought expressions of interest in the carrier from potential investors.

Lenders, led by the State Bank of India (SBI), want a new investor to buy a stake of up to 75 percent in Jet and initial expressions of interest were submitted last week.

A spokesman for SBI said in a statement late on Monday the bank was running the sale but gave little detail.

The airline had more than 120 aircraft operating a year ago, but competition from low-cost carriers such as IndiGo and SpiceJet Ltd, together with high oil prices, hefty fuel taxes and a weak rupee have lately piled on pressure.

Reuters

Photo Rob Vogelaar