Jet Airways on Wednesday announced temporary suspension of all its international and domestic flights, with the last flight slated to operate between Amritsar and Mumbai tonight.
In a filing before the Bombay Stock Exchange (BSE) and a statement to the media, Jet Airways said that it 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,” it said.
Kuldeep Sharma, Vice President-Global Compliance and Company Secretary in the filing to BSE said that 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 said that it has informed the Directorate General of Civil Aviation, 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,” the filing said.
It added that this has been a very difficult decision but without interim funding, the airline was 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,” it said.
Jet Airways said 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,” a spokesperson said.
The airline informed BSE that 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.”
A Jet Airways spokesperson informed that the airline will continue to support the bid process initiated by the lenders. “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 appologises for the disruption to the travel plans of all its guests. The airline would like to thank them for their continued patronage, sup-port and loyalty over the years,” the spokesperson said.