Jet Airways hits ground after 25 years of journey
Curtains came down on 25 year old on India’s largest private airline, Jet Airways, on April 17. The cash-strapped airline halted all operations after lenders rejected its plea for emergency funds.
If Times Of India is to be believed, more then 22,000 employees would be affected by this shutdown.
Jet Airways flew its last flight on Wednesday night—9W 2502 from Amritsar to Mumbai. It’s unclear whether the airline will ever return to the skies, but if it does so, it will be under a new ownership structure.
“Late last night, Jet Airways was informed by the State Bank of India (SBI), on behalf of the consortium of Indian lenders, that they are unable to consider its request for critical interim funding,” Jet Airways said in a statement. “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,” it added. The airline said it would await the bid finalization process by the lenders that is likely to bring in fresh equity by the end of May.
The interim emergency funding of ₹400 crore sought by Jet Airways was supposed to help the airline keep at least some of its planes flying till the lenders found a buyer.
“A decision like this is never easy to make, but without the interim funding, which we have been repeatedly requesting for, we are simply unable to conduct flight operations in a manner that delivers to the very reasonable expectations of our guests, employees, partners and service providers,” CEO Vinay Dube said in an email to Jet Airways employees, adding that the company was working to ensure the bid process leads to a viable solution.
“The company’s leadership, in consultation with the board of directors, is engaged with the lenders in connection with the said emergency funding request to arrest a further deterioration of its services and minimize inconvenience to its guests,” the company said in a statement after the board meeting.