Published: Wed, April 17, 2019
Money | By Ethel Goodwin

India's Jet Airways suspends all operations

India's Jet Airways suspends all operations

Separately on Wednesday, two sources at state-run banks told Reuters news agency that the banks had rejected the 4bn rupees ($58m) that Jet had sought to keep itself temporarily afloat, while its lenders attempted to identify an investor willing to acquire a majority stake in the airline and attempt to turn it around.

Earlier this month, the airline's fleet was significantly reduced to just five aircraft and forced to suspend worldwide operations.

"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. and has chose to go ahead with a temporary suspension of operations", the airline said.

Over the last several weeks and months we have tried every means possible to seek funding, both interim funding as well as long term funding, to keep our operations going, but we were not successful.

The airline said it was forced to take the step as a consortium of lenders had turned down its request for emergency interim funding. "The last flight will operate today", it added. According to media reports, there have been multiple expressions of interest, including from Etihad Airways who are already a shareholder in Jet.

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".

Since April 11 Jet Airways has stopped operating its sole global flight from Bengaluru-the daily 9W235 flight to Amsterdam.

The uncertainty over the crucial funding crashed Jet Airways stock on Tuesday, with shares plunging around 20 percent. Goyal along with his wife Anita stepped down on Monday following which lenders agreed to pump in Rs 1,500 crore to bail out the financially troubled airline.

Private airline Jet Airways on Wednesday said that it has chose to suspend all its operations, domestic as well as worldwide.

Naresh Goyal quits as Jet Airways chairman, stake slashed to 25%.

Referring to his offer to repay 100 per cent of his loans to Indian banks and government, Mallya said, "I invested hugely into Kingfisher which rapidly grew to become India's largest and most awarded airline".

A Jet Airways Boeing 737 on the tarmac.

Once de-registered, lessors are free to take a plane out of the country and lease it to other airlines.

The banks are still seeking a bidder for up to 75% of the airline.

As of 1415 GMT on Tuesday, Jet listed on its website roughly three dozen flights that it plans to operate on Wednesday.

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