Cash-strapped airline Jet Airways on Wednesday announced temporary suspension of its flight operations effective Wednesday.
“With immediate effect, Jet Airways is compelled to cancel all its international and domestic flights. The last flight will operate Wednesday,” the company said in a statement.
“Late Tuesday 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,” it said.
Jet Airways has informed the DGCA, and the Ministries of Civil Aviation and Finance and other relevant government institutions, of this course of action.
The airline said the 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.
Over the last several weeks and months, the company has tried every means possible to seek both interim and long-term funding. Unfortunately, despite its very best efforts, the airline has been left with no other choice today but to go ahead with a temporary suspension of flight operations.
“This has been a very difficult 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 said.
It said that after 25 years of sharing the Joy of Flying with Indian and international guests, Jet Airways has been forced to take this extreme measure as prolonged and sustained efforts with lenders and authorities did not yield the desired results.
Essential services needed to support guest services and the re-commencement of the flight operations will be kept onboard until further notice, they said.
Jet Airways will now await the bid finalisation process by SBI and the consortium of Indian Lenders, the statement added.
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 Wednesday.
“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,” the lenders said.
“Jet Airways will continue to support the bid process initiated by the lenders,” the statement added.
The Jet Airways has been facing a mounting debt of more than Rs 8,000 crore. On March 25, the airline’s Board Meet has decided to infuse a capital of Rs 1500 crore immediately to put the carrier on the roadmap of recovery.