Jet Airways suspends all flight operations

India's Jet Airways to suspend all operations after banks reject funding request

"Even though Jet was a major competitor to Kingfisher at the time I feel sorry to see such a large private airline on the brink of failure when the government used 35K crores (Rs 35,000 crores) of public funds to bail out Air India".

Lenders are likely to invite binding bids from four shortlisted suitors, private equity firms TPG Capital and Indigo Partners, Indian sovereign wealth fund National Investment and Infrastructure Fund, and the UAE's Etihad Airways that already owns a minority stake in Jet, local media reported. True, Kingfisher borrowed from PSU Banks as well.

It reportedly said the move was temporary.

India's Jet Airways Ltd will be forced to shut down as soon as Wednesday (April 17) if it does not get emergency funding from its lenders, two sources familiar with the matter said on Tuesday. "Why don't Banks take the money I offered first", he questioned.

The company had more than 16,000 employees on its payroll - and a number of staffers across various roles started jumping ship over the past few weeks, joining rival airlines in the domestic as well as the global circuit.

India's debt-stricken Jet Airways grounded all of its operations today after failing to secure emergency funding from lenders, the carrier said in a statement.

It is seeking funding of £165million to keep operating. Prabhu has also asked civil aviation secretary Pradeep Singh Kharola to take necessary steps to protect the rights and safety of passengers, in the light of rising airfares and an increasing amount of flight cancellations. "Interim funding has not been forthcoming thus far, & as a result of this we have extended cancellation of global operations through Thursday, April 19". Representatives of various lenders to Jet Airways are also understood to have discussed issues related to the beleaguered airline with Financial Services Secretary Rajiv Kumar.

"We would like to appeal SBI to release Rs 1,500 crore funds for the airline to help it continue operations".

Pilots, engineers and ground staff have not been paid for months while passengers have been left stranded around the world. The crisis-hit airline has also defaulted on the March salary of other categories of employees as well.

DGCA on Tuesday asked airlines to reduce fares on ten high-density domestic routes to reasonable levels. A senior official of the aviation regulator said that ticket prices on high-density routes have increased up to 30 per cent over the last one month. A consortium led by the State Bank of India is in active talks with several parties regarding a sale of up to 75% of Jet Airways' stake. Further, Jet Airways in a regulatory filing said that in view of the critical liquidity position, its operations have been severely impacted and its awaiting emergency funding from lenders in this regard.



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