Jet Airways announces temporary suspension of flight operations
April 18, 2019: Jet Airways flew its last flight on Wednesday night—9W 2502 from Amritsar to Mumbai—after lenders declined to hand out emergency funds, bringing the curtains down on an era in which it broke into a state monopoly sector to become India’s largest private airline at one point.
The group has already received approval of key stakeholders, including founder Naresh Goyal and Etihad Airways, which hold 51 percent and 24 percent stakes respectively in Jet. Of Goyal’s 51 percent, 31.2 percent is pledged with lenders.
April 18, 2019: Jet Airways flew its last flight on Wednesday night—9W 2502 from Amritsar to Mumbai—after lenders declined to hand out emergency funds, bringing the curtains down on an era in which it broke into a state monopoly sector to become India’s largest private airline at one point.
“Late last night, Jet Airways was informed by the State Bank of India (SBI), on behalf of the consortium of Indian lenders, that they are unable to consider its request for critical interim funding," Jet Airways said in a statement 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." Given the current situation, the airline is left with no other choice but to go ahead with a temporary suspension of flight operations. 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 Indian lenders.
This decision was taken after a painstaking evaluation of all alternatives that were made available to the company and after receiving guidance and advice on the same from its Board of Directors. Jet Airways has informed the DGCA, and the Ministries of Civil Aviation and Finance and other relevant government institutions, of this course of action.
“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 company stated.
In its response to the airline, the lenders have said, “The Expressions of Interest (EOI) have been received and bid documents have been issued to the eligible recipients today. 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.”
