Published: Wed, April 17, 2019
Markets | By Otis Pena

Jet Airways Suspends All Flights As It Fails To Get Emergency Funds

Jet Airways Suspends All Flights As It Fails To Get Emergency Funds

Indian airline Jet Airways has announced the suspension of all domestic and worldwide operations.

Jet Airways said that it has informed the Directorate General of Civil Aviation, and the Ministries of Civil Aviation and Finance and other relevant government institutions, of this course of action.

In a statement, the 26-year-old airline said: "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 is now unknown whether Jet Airways will be able to restart operations.

Also, in order to retain the wide-bodied aircraft, Jet Airways will need substantial funding soon.

Mallya, who is facing an extradition case to India in a London court, in a series of Tweets, said his heart went out for the beleaguered airline, which was on the verge of complete shutdown as its lenders had not released the minimum required funding of around Rs 1,500 crore.

Even as lenders to Jet Airways shortlisted four potential nvestors, the management of the ailing airline made a fresh plea for immediate interim funding to keep the company operational till a new owner takes charge.

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Embattled carrier Jet Airways made a decision to temporarily suspend all operations from Wednesday night, the company said in a stock exchange filing.

A Jet Airways spokesperson informed that the airline will continue to support the bid process initiated by the lenders.

Mehta's comments come after Jet informed all employees in a letter on Monday it was extending a suspension of global flights until Thursday due to a lack of funds. While the airline is still waiting to hear from banks, aviation authorities have meanwhile started frantic efforts to rein in runaway fares as a fallout of Jet - which had a fleet size of 124 last November - is operating just five planes as of Tuesday.

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

It said those with flights booked would be contacted via text or email and apologised for the disruption.

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.

Jet Airways had said earlier on Wednesday it was working to "minimise guest inconvenience" by using its contact centres and social media teams.

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