Jet Airways suspends operations temporarily from tonight

Published : Apr 17, 2019, 6:29 PM IST

Updated : Apr 17, 2019, 7:39 PM IST

"With immediate effect, we are compelled to cancel all our international and domestic flights. The last flight will operate today," Jet Airways informed the exchanges.

Jet Airways

Mumbai: Teetering for over four months due to cash-drought, Jet Airways, flying for over 25 years, on Wednesday said its last flight will takeoff later this night, after its lenders refused to offer a Rs 400-crore lifeline.

"With immediate effect, we are compelled to cancel all our international and domestic flights. The last flight will operate today," Jet Airways informed the exchanges. The airline said the decision follows the lenders refusing to offer a lifeline.

"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... and has decided to go ahead with temporary suspension of operations," the airline said.

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

After a board meeting 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.

Late last night, Jet Airways was informed by State Bank of India, on behalf of the consortium of lenders, that they were unable to consider its request for critical interim funding, the airline said in the statement.

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

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URG COM ECO GEN NAT
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JET-BANK-LOANS
Jet Airways has no option but to shutter, as banks refuse
lifeline yet again
Mumbai, Apr 17 (PTI) With the lenders rejecting an
lifeline of Rs 400 crore Wednesday Jet Airways, which has been
on a wing and prayer since January, is left with no other
option but to ground operations at least temporarily.
Since the March 25 resolution to infuse Rs 1,500 crore
into the airline is yet to fructify, the once leading airline
has been defaulting on payments, forcing its lessors to retake
almost all its planes and was operating just about six planes
as of Tuesday.
An official announcement of grounding of operations is
expected anytime now as the Jet Airways board had Tuesday
authorised chief executive Vinay Dube to make one last appeal
to the SBI-led consortium to get a life-line of Rs 400 crore
Wednesday, before taking a final call on the future.
Jet will be the seventh airline to go down since May
2014 and the 13th one after East West was shuttered.
During the past five years airlines like Air Pegasus,
Air Costa, Air Carnival, Air Deccan, Air Odisha and Zoom Air
have all gone belly up even as the government boasts of
double-digits growth for more than four years in tow.
"The Jet Airways management's request for Rs 400 crore
emergency funds has been rejected," banking sources told PTI.
A source at the Jet Airways also said the airline was
likely to shutter soon as the banks have not extended it the
required financial support.
"The airline has failed to garner the funds it was
desperately looking for to continue operations," he said.
The airline is currently operating only five planes
from 123 aircraft in the fleet till last December.
According to sources, the government is maintaining
distance from the Jet affairs citing the matter is a
commercial decision of banks. PTI HV IAS DP
BEN
BEN
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Last Updated : Apr 17, 2019, 7:39 PM IST

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Jet Airways suspends operations temporarily from tonight

"With immediate effect, we are compelled to cancel all our international and domestic flights. The last flight will operate today," Jet Airways informed the exchanges.

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