Jet suspends operations after lenders deny critical funding

Jet Airways has cancelled all its international and domestic flights after a State Bank of India-led consortium of lenders denied the troubled airline’s request for critical interim funding necessary to keep it afloat.

The last flight will operate on Wednesday. “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,” Jet said in a statement.

Meanwhile, the consortium is reviewing bids for the sale of up to 75% stake in the 25-year old airline, which is saddled with debt of over $1 billion.

“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,” the lenders said.

Last month, founder Naresh Goyal stepped down from the carrier’s board and relinquished control of the airline, in keeping with a rescue plan prepared by its lenders to save the carrier from bankruptcy.

The decision to cancel operations was taken, “after a painstaking evaluation of all alternatives that were made available to the company”, it said. Jet also said it 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.”