INDIA. In a big blow to Indian aviation – and travel retail (both home and abroad) – Jet Airways yesterday announced the immediate suspension of all domestic and international flights.
In a statement yesterday, the airline said that it had been informed by the State Bank of India (SBI), on behalf of the consortium of Indian Lenders, that a request for “critical interim funding” would not be considered.
“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,” Jet Airways said. “Consequently, with immediate effect, Jet Airways is compelled to cancel all its international and domestic flights. The last flight will operate today.”
According to CNN, the carrier founded by Naresh Goyal accounted for almost 20% of passengers carried by Indian airlines in 2018. “Yet in recent years it struggled to cut costs to compete with newer budget airlines like IndiGo. Rising oil prices and the increased volatility of India’s currency, the rupee, only made matters worse,” CNN reported.
The airline said that the decision had been taken after a “painstaking evaluation of all alternatives”.
“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 statement said.
Jet Airways said that it will now await the bid finalisation process by SBI and the consortium of Indian Lenders.
In its response to the airline, the lenders said, “The Expressions of Interest 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.”
Jet Airways said it will continue to support the bid process initiated by the lenders.
It concluded: “Jet Airways is hopeful that it will be able to bring the joy of flying back to its guests as soon as possible. Over the past 25 years, Jet Airways has established itself as India’s airline of choice and the flag-bearer of warm Indian hospitality around the world. The airline has proudly fuelled India’s economic engine, enabling business travellers and tourists alike to traverse the length and breadth of India and the world.”
