Jet Airways is battling for survival and has yet to receive a loan of about Rs 1,500 crore as part of a rescue deal with government-owned lenders
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Jet Airways will temporarily suspend all flight operations from Wednesday night as it failed to secure interim funding of Rs 400 crore for maintaining bare minimum operations, sources said on Wednesday.
Jet Airways had requested for emergency funding of Rs 400 crore from banks and the debt-ridden airline is in talks with lenders Civil Aviation Secretary Pradeep Singh Kharola said on Tuesday. He stressed that a commercial decision is yet to be reached between lenders and the airline.
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"As per the current financial situation, it is not possible to maintain operations without any further funding. Operations will cease from tonight," sources told IANS.
The airline will operate its last flight for the day at around 10.30 p.m. Jet has already folded up most of its operations due to the grounding of over 90 percent of its fleet by lessors.
Awaiting the outcome of lenders' meet with the government, the cash-starved airline has extended cancellation of international flights till April 18 (Thursday) after last week suspending them till April 15 (Monday).
Jet owes over Rs 8,000 crore to the SBI-led consortium of lenders. Its only ray of hope is an immediate injection of interim funding and the completion of the stake sale process initiated by lenders. The embattled airline operated 5 planes on Tuesday.
Jet Airways' official statement:
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. 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. Consequently, with immediate effect, Jet Airways is compelled to cancel all its international and domestic flights.
The last flight will operate today. This decision has been 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. Over the last several weeks and months, the company 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. 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. After 25 years of sharing the Joy of Flying with Indian and international guests, Jet Airways has been forced to take this extreme measure as prolonged and sustained efforts with lenders and authorities did not yield the desired results. 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. 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.” Jet Airways will continue to support the bid process initiated by the lenders.
JET AIRWAYS # The airline will inform all guests about the temporary suspension of flight operations via text message or email to the contact details listed in their bookings. Jet Airways sincerely and profusely apologises for the disruption to the travel plans of all its guests. The airline would like to thank them for their continued patronage, support and loyalty over the years. Jet Airways is hopeful that it will be able to bring the Joy of Flying back to its guests as soon as possible. Over the past 25 years, Jet Airways has established itself as India’s airline of choice and the flag-bearer of warm Indian hospitality around the world.
The airline has proudly fuelled India’s economic engine, enabling business travellers and tourists alike to traverse the length and breadth of India and the world. Even during the toughest of times, Jet Airways employees have worn a smile on their face and put their duty to its guests and the nation first. Above all, the airline would like to express its sincere gratitude to all its employees and stakeholders that have stood by the Company in these trying times. We hope to bring the flying sun back into the skies.
With inputs from agencies
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