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

Jet Airways crisis: Jet Airways has debt of more than Rs. 8,000 crore.
Jet Airways crisis: Jet Airways has debt of more than Rs. 8,000 crore.

Embattled carrier Jet Airways decided to temporarily suspend all operations from Wednesday night, the company said in a stock exchange filing. The move comes after lenders rejected Jet's request for additional funds. Late last night, Jet Airways was informed by the State Bank of India (SBI), on behalf of the consortium of lenders, that they were unable to consider its request for critical interim funding, Jet Airways said in the press statement.

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. Consequently, with immediate effect, Jet Airways is compelled to cancel all its international and domestic flights. The last flight will operate today, Jet Airways said.

"Bankers did not want to go for a piecemeal approach which would keep the carrier flying for a few days and then again risk having Jet come back for more interim funding," one of the bank sources directly involved in Jet's debt resolution process was quoted as saying in a Reuters report.

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, Jet said.

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 Mumbai-based airline added.

Meanwhile, the State Bank of India informed Jet Airways that it had received expression of interest documents by bidders for stake in Jet Airways.

The lender said, "The Expressions of Interest (EOI) have been received and bid documents have been issued to the eligible recipients today. The bid documents inter alia has 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."

Jet Airways added that it will continue to support the bid process initiated by the lenders.