Jet Airways is to suspend all its operations until further notice later on April 17, having failed to attract new investors, the Indian airline had announced in a press release. It hopes a new rescue plan will keep the airline alive after May 10.
As reported on Airinsight last weekend, Jet Airways has been in dire financial trouble since late 2018. As backers lost confidence and lessors wanted their aircraft back, Jet Airways was forced to cancel all international operations since last Friday. Only a minimum number of domestic service was operated.
Last Monday, the Jet Airways board hoped to conclude an agreement with a consortium of investors led by State Bank of India (SBI) over new funding. After the talks were unsuccessful, the airline was left no option than to wind down.
In a press release on April 17, Jet Airways says: “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.”
It continues: “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.”
A Jet Airways Boeing 777-300ER. (Jet Airways)
In the meantime Jet Airways continues a bidding process with potential lenders that should be concluded on May 10. 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 inform all its passengers about the suspension of its operations. The future of its 22.000 staff – many of them not paid for over three months – is dependent on the outcome of the May 10 deadline. “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.”
For more on the effects of Jet Airways’ demise, check our analysis on April 14.