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

Jeannie Matthews
April 17, 2019

A high-ranking official working with Jet Airways confirmed the news saying that 'we will be grounded for good from tonight.' "It's a sad news for all of us". In order to operate on worldwide routes, any Indian airlines needs to have 20 planes in operations at any given time.

Fugitive liquor baron Vijay Mallya lashed out at the PM Narendra Modi-led BJP government on Wednesday for "discriminatory attitude" between state-owned and private airlines.

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

"This has been a very hard 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", Jet said in the statement.

Last month, Mallya had urged the banks to take his money and save the cash-strapped Jet Airways.

The assurance from the government came on a day when Jet Airways wrote to the Prime Minister's Office, the Ministries of Finance and Civil Aviation and the Chief Minister of Maharashtra stating that it needed an urgent induction of funds, without which it will not be able to continue flying.

The airline said it would continue to work with its lenders, who are trying to identify an investor willing to buy a majority stake in the airline and attempt to turn it around.

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In a series of tweets, Mallya said that the collapse of Jet Airways and his Kingfisher Airlines (which is now defunct) is largely due to the policies of the government.

"Jet Airways is compelled to cancel all its global and domestic flights".

"Jet Airways will now await the bid finalisation process by SBI and the consortium of Indian Lenders", the airline said, adding that it hoped to resume services "as soon as possible".

It was not immediately clear who else might bid for the company. The bid process will conclude on 10th May 2019 ... But, thus far, they have disbursed less than Rs 300 crore, that too in small amounts, citing procedural delays.

Embattled Jet Airways said on Wednesday it was halting all flight operations after its lenders rejected its plea for emergency funds, potentially bringing the curtains down on what was once India's largest private airline.

Earlier on Tuesday, Indian business channel BTVI said Jet's board had authorized Dube to seek a minimum of 4 billion rupees (S$78 million) in interim funding, and had advised him to ground the airline if no funds materialized.

Earlier on Monday, Jet Airways' pilots appealed to the SBI to release Rs 1,500 crore for the airline.

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