India's Jet Airways to suspend all operations after banks reject funding request

Jet Airways

Indian airline Jet Airways has announced that they have temporarily suspended all flights.

Earlier this week, Jet's creditors, led by the State Bank of India, were unable to reach a decision on the emergency infusion in the airline's operations.

Since April 11 Jet Airways has stopped operating its sole global flight from Bengaluru-the daily 9W235 flight to Amsterdam. The lenders are keen to have Etihad take over Jet Airways' operations as it is the only strategic investor in the fray,"said a third source".

Latest analysis of data disclosed by the Directorate General of Civil Aviation shows that Jet's lessors have, so far, sought to deregister and repossess at least four dozen of the planes operated by Jet. "This has been a very hard decision but without interim funding, the airline is simply unable to conduct flight operations in a manner that delivers to the very reasonable expectations of its guests, employees, partners and service providers", the statement added. After a board meeting on Tuesday, the management had authorised chief executive Vinay Dube to make one last appeal to the lenders for an emergency Rs 400 crore funding, and if not the demand is not met, take a final call on the future of the airline on Wednesday.

In a statement the airline said it had been forced to ground all its flights because "prolonged and sustained efforts with lenders and authorities did not yield the desired results".

Jet Airways will continue to support the bid process initiated by the lenders. A consortium led by the State Bank of India is in active talks with several parties regarding a sale of up to 75% of Jet Airways' stake.




On Tuesday, Jet Airways' former chairman, Naresh Goyal, reportedly withdrew plans to bid for a controlling stake in the company.

It described the flight suspension as "temporary". The bid process will conclude on 10th May 2019 ...

Speaking to newspersons after an interaction with Rajiv Kumar, Secretary, Department of Financial Services, Sunil Mehta Punjab National Bank Managing Director & CEO, said: "Discussions for reviving the airline are under way and nothing has been finalised as of now". "Jet Airways sincerely and profusely apologies for the disruption to the travel plans of all its guests". Its fleet is reduced to just five aircrafts and it has suspended its global operations.

Easter is a busy period for families travelling between the United Kingdom and India. Even during the toughest of times every employee has worn a smile on their face and put their duty to our guests and the nation first.

Above all, the airline would like to express its honest gratitude to all its employees and stakeholders that have stood by the Company in these trying times. Jet said that it hopes to resume flying soon.

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