- After months of efforts, Jet Airways was not able to secure interim or long-term funding.
- The airline has informed DGCA, and the Ministries of Civil Aviation and Finance about its decision.
Amidst grim circumstances, Jet Airways has announced that it will be putting a hold to all its domestic and international operations effective today. The State Bank of India (SBI), informed Jet Airways on behalf of the consortium of lenders that it won’t be able to consider its request for critical interim funding. Jet Airways has hit a wall for its operational expenses as, without any funding towards its way, the airline will not be able to pay for fuel or other critical services to keep the operations going. This has compelled the carrier to cancel all its international and domestic flights effective immediately. The last flight of Jet Airways takes flight today.
Airline Informs DGCA and Other Concerned Authorities
To recall, the company had meticulously considered all options and explored many avenues for funding. The airline had also sought guidance and advice on this matter from its board of directors as well. Unfortunately, Jet Airways was not able to come to an actionable conclusion. Following this closure of operations, the company has sent proper intimations to the DGCA, and the Ministries of Civil Aviation and Finance and other relevant government institutions informing them about this latest decision.
In the previous months and weeks, Jet Airways has sought every means possible to bring interim or long-term funding for the company, but with all the doors closed, it is very tough for the airline to continue operations.
Bid Process to Complete on May 10, 2019: Lenders
In its media statement, Jet Airways said, “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.” The company further noted, “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.”
On the other hand, 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.”
Whenever Arpit boards a plane he is filled with awe and bewilderment and soaring above the skies is something marvellous for him. An aviation and tech geek through and through Arpit writes at AviationScoop not only because he's experienced and good at his craft but also because flying is something which makes his heart flutter with joy.