Jet Airways fails to get funds, to suspend operations temporarily

Jet Airways fails to get funds, to suspend operations temporarily

Mumbai: Jet Airways announced that it has temporarily suspended all flight operations from Wednesday night as the airline failed to secure an interim funding of Rs 400 crore for maintaining even bare minimum operations. IANS was one of the first to report the company’s decision after the airline failed to secure an interim funding from lenders to stay afloat. “As per the current financial situation, it is not possible to maintain operations without any further funding. Operations will cease from tonight,” sources told IANS here.

Currently, the airline only operated five aircraft with over 25 flights. The airline is expected to operate its last flight for the day at around 10.30 p.m. Jet, in a regulatory filing, said that late on Tuesday night, the State Bank of India (SBI), on behalf of the consortium of Indian lenders, told it 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,” the airline said in the filing. “Consequently, with immediate effect, Jet Airways is compelled to cancel all its international and domestic flights. The last flight will operate today.”

As per the filing, Jet has informed the Directorate General of Civil Aviation, the Ministries of Civil Aviation and Finance and other relevant government institutions, of this course of action. “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,” it said in the filing. “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 airline further said that essential services needed to support guest services and the re-commencement of the flight operations will be kept onboard until further notice. “Jet Airways will now await the bid finalisation process by SBI and the consortium of. (IANS)

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