India's Jet Airways suspends all operations

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

Jet Airways cancels all flights causing passenger chaos | Daily Star

Jet Airways, in its letter said SBI had earlier in the day rejected an offer for interim funding of Rs 983 crores and were compelled to cancel all worldwide and domestic flights.

Jet Airways will operate the last flight on Wednesday as it cancels all its global and domestic flights, the airline said in a statement.

With the resumption of flights on this route looking bleak, Jet has started to accommodate its passengers on other airlines including Air India which operates flights to many European destinations like Rome/Milan, Paris, Frankfurt, Vienna, Stockholm, Copenhagen and Madrid.

In a press release, the airline added that lenders had said, "The Expressions of Interest (EOI) have been received and bid documents have been issued to the eligible recipients today".

The statement referenced multiple attempts over the last several months to secure both interim and long-term funding, but all attempts had failed resulting in the action."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".

Accordingly, the last flight will leave the Amritsar airport at 2230 hrs for New Delhi as per its flight schedule.

CNBC-TV18 reported on Tuesday that Jet's lenders were set to invite binding bids from four shortlisted suitors that include private equity firms TPG Capital and Indigo Partners, Indian wealth fund National Investment and Infrastructure Fund (NIIF), and Etihad Airways, which already owns a minority stake in Jet.

The company said it has been informed by its lenders, led by state-run State Bank of India, that they are unable to consider its request for funding to keep flying.

It's, however, not clear whether the airline's decision shut operations is temporary. Airline Karma? The former Kingfisher Airlines boss took yet another swipe at the media as well, claiming every offer he makes to pay back funds owed by his now-defunct Kingfisher Airlines to PSU banks resulted in reports that claim he is spooked, terrified etc of being extradited from the United Kingdom back to India.

At its peak, Jet operated more than 120 planes and well over 600 daily flights. All flights will be cancelled, starting today, April 17th. The bidding process will end on 10 May. "We are actively working to try and ensure that the bid process leads to a viable solution for the company".

"For example, we don't have an answer today to the very important question of what happens to the employees during the sale process", he said.

India's civil aviation regulator disclosed on Tuesday that lessors have sought to de-register another seven Jet aircraft.

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