Jet Airways crash-lands

Mumbai: Teetering for over four months due to cash-drought, Jet Airways, the country's oldest airline, shut operations 'temporarily' on Wednesday as its lenders led by State Bank of India (SBI) refused to infuse emergency funding of Rs 400 crore.

In operation for over 25 years with a catchy tagline of 'Joy of Flying', Jet Airways founded by Naresh Goyal in 1993 was scheduled to operate its last flight late in the night on Wednesday. As per the airline's schedule, the last flight was scheduled to leave the Amritsar airport in Punjab at 10.30 pm for New Delhi.

"With immediate effect, we are compelled to cancel all our international and domestic flights. The last flight will operate today (Wednesday)," Jet Airways said in a detailed press statement on Wednesday evening.

The airline said the decision followed the lenders refusing to offer a lifeline. "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 and has decided to go ahead with temporary suspension of operations," the airline said.

After a board meeting Tuesday, the management had authorised Chief Executive Vinay Dube to make one last appeal to the lenders for an emergency Rs 400 crore funding, and if the demand is not met, take a final call on the future of the airline on Wednesday. Late last night, Jet Airways was informed by State Bank of India, on behalf of the consortium of lenders, that they were unable to consider its request for critical interim funding

The airline was only operating five aircraft with over 25 flights before the management took the decision to stop operations. As per the statement, Jet has informed the Directorate General of Civil Aviation (DGCA), 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," it said.

"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."

The airline further said that essential services needed to support guest services and the re-commencement of the flight operations will be kept onboard until further notice. "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 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 airlines said.

"Jet Airways will now await the bid finalisation process by SBI and the consortium oflenders," it added. In its response to the airline, the lenders 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." The development assumes significance as just a day before the airline's lenders said that they remain committed to its revival.

Jet has already folded up most of its operations due to grounding of over 90 per cent of its fleet by lessors.The cash-starved airline had extended cancellation of international flights till April 18 (Thursday) after last week suspending them till April 15 (Monday).Jet's woes have intensified as the airline that once operated around 120 aircraft is now left with just a 16-plane fleet.It owes over Rs 8,000 crore to the SBI-led consortium of lenders.