MUMBAI: Unable to secure interim funding from lenders, embattled airline Jet Airways on Wednesday announced temporarily suspending operations late from tonight. Reports say that the last flight is expected to be a 10.20 pm Mumbai-Amritsar flight.
“Late last night, Jet Airways was informed by the State Bank of India (SBI), on behalf of the consortium of Indian Lenders, that they are unable to consider its request for critical interim funding. Since no emergency funding from the lenders or any other source is forthcoming, the airline will not be able to pay for fuel or other critical services to keep the operations going. Consequently, with immediate effect, Jet Airways is compelled to cancel all its international and domestic flights. The last flight will operate today,” the carrier said in a statement.
CEO Vinay Dube reportedly had approached the lenders one last time yesterday with an appeal for Rs 400 crore. The banks refused to release any funds without additional collateral. Jet Airways will now await the bid finalisation process by SBI and the consortium of Indian Lenders. In its response to the airline, the lenders have said, “The Expressions of Interest (EOI) have been received and bid documents have been issued to the eligible recipients today. The bid documents inter alia have solicited plans for a quick revival of the company. The bid process will conclude on 10th May 2019 … We are actively working to try and ensure that the bid process leads to a viable solution for the company.”
Jet said it will inform all guests about the temporary suspension of flight operations via text message or email to the contact details listed in their bookings. Essential services needed to support guest services and the re-commencement of the flight operations will be kept onboard until further notice. It also expressed its gratitude to employees, most of whom haven’t received salary of three months. This is the first time that the 25-year old full-service carrier has halted its operation. Founded in 1992 and starting full-fledged operations in 1995, Jet Airways till last year was the second biggest carrier in the Indian aviation industry with market share over 17 per cent. However, from September last year it ran into financial trouble and since February it had to ground almost its entire fleet over non-payment of dues to lessors.
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The airline said that this decision has been taken after a painstaking evaluation of all alternatives that were made available to the company and after receiving guidance and advice on the same from its Board of Directors. Jet has informed the DGCA, and the Ministries of Civil Aviation and Finance and other relevant government institutions, of this course of action. “Over the last several weeks and months, the company has tried every means possible to seek both interim and long-term funding. Unfortunately, despite best efforts, the airline has been left with no other choice today but to go ahead with a temporary suspension of flight operations,” Jet Airways said.