Jet Airways has suspended all its domestic and international flights after failing to secure emergency funding, it said in a statement on Wednesday.
“It is with deep sadness and with a heavy heart that we would like to share with you that, effective immediately, Jet Airways will be suspending all its domestic and international operations,” the message from the CEO read.
“Late last night we were informed by SBI, on behalf of the consortium of Indian lenders, that they are unable to consider our request for interim funding. Since no emergency funding from the lenders or any other source of funding was forthcoming, it would therefore not have been possible for us to pay for fuel or other critical services to keep the operations going.
Jet Airways pilots gather to seek clarification on their unpaid salaries at Jet Airways head office in Mumbai, India, 15 April 2019. Source: AAP
“Consequently, with immediate effect, we are compelled to cancel all our domestic and international flights.”
The airline is partly owned by Etihad Airways and is now looking for a private investor to buy the rest of the airline.
“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,” the consortium said in a statement shared by Jet Airways.
Jet Airways lenders on Thursday said they are reasonably hopeful of a successful bidding process for the stake sale.
Jet Airways aircraft (back) parked in New Delhi, India, 13 April 2019. Source: AAP
"Lenders are reasonably hopeful that the bid process is likely to be successful in determining fair value of the enterprise in a transparent manner," a consortium of 26 lenders led by State Bank of India (SBI), with 51 per cent stake in the debt-trapped airline said.
Suspension is temporary
The suspension of services is temporary, the airline said.
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.
Jet Airways is hopeful that it will be able to bring the Joy of Flying back to its guests as soon as possible.
“Passengers being refunded for their bookings”
The sudden suspension of services has left many stranded.
The airline said it 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,” the statement said.
The airline said it was providing refunds for the bookings.
Employees of Jet Airways hold placards as they march during a protest outside Indira Gandhi International Airport in New Delhi, India, Saturday, April 13 2019. Source: AAP
“Support pours on Twitter”
The 25-year-old Indian airline was founded in the early 1990s by Naresh Goyal and went on to become one of the most successful airlines, accounting for nearly 20% of passengers carried by Indian airlines in 2018.
People who have flown with the airline over years poured in their support for the airline on Twitter, hoping the airline makes a comeback soon.
The airline operates a codeshare with Qantas from Singapore and Hong Kong.
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