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Jet Airways fails to secure emergency funds from lenders, cancels all flights


Devdiscourse News Desk India
Updated: 17-04-2019 20:38 IST
Jet Airways fails to secure emergency funds from lenders, cancels all flights

Image Credit: IANS

Jet Airways on Wednesday cancelled all flights, including its international flights temporarily after failing to secure emergency funds from its lenders, according to a statement by the airlines. The embattled airline said it took this decision after State Bank of India (SBI) on behalf of a consortium of Indian lenders informed on Tuesday night, that they were 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," Jet said in a statement. The airline said it will inform passengers about the cancelled flights via text or mail and will also make other arrangements for them. It also expressed the hope that the airline would resume function once again in the future post the bid finalisation process by SBI and other lenders.

"Jet Airways will now await the bid finalisation process by SBI and the consortium of Indian Lenders," the airline said. The Airline is battling for survival and has yet to receive a loan of about Rs 1,500 crore as part of a rescue deal with government-owned lenders. An SBI-led consortium has taken over the airlines after chairman and founder Naresh Goyal stepped down from the Board on March 25. Burdened with high operating costs and a huge debt, the airline has been facing the biggest crisis in its history.

COUNTRY : India

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