Jet suspends operations after lenders deny critical funding

/1 min read

ADVERTISEMENT

The airline said it is unable to pay for fuel and other services without interim funding.
Jet suspends operations after lenders deny critical funding
 Credits: Jet Airways

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.

Fortune India Latest Edition is Out Now!
40u40: India's Brightest Young Business Minds

July 2025

In the world’s youngest nation—where over 65% of the population is under 35—India’s future is already being shaped by those bold enough to lead it. From boardrooms to breakout ideas, a new generation of business leaders is rewriting the rules. This year's Fortune India’s 40 Under 40 celebrates these changemakers—icons in the making like Akash Ambani, Kaviya Kalanithi Maran, Shashwat Goenka, Parth Jindal, Aman Mehta, and Devansh Jain—who are not just carrying forward legacies but boldly reimagining them for a new era. Alongside them are first-generation disruptors like Sagar Daryani, scaling Wow! Momo with a vision to take ₹100 momos to 5,000 cities, and Palak Shah, turning the Banarasi weave into a global fashion story with Ekaya Banaras. These are the entrepreneurs turning ambition into scale. And even beyond traditional industry, the entrepreneurial wave is pulling in creative forces—Ranveer Singh, for instance, is shaking up wellness and nutrition with Bold Care and SuperYou, proving that passion, backed by purpose, is the new blueprint for building brands.

Read Now

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.”

Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.