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

Read Jet Airways Statement On Temporary Suspension Of Flight Operations

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

In a filing to BSE on Tuesday, Jet Airways reacted to queries from the stock exchanges on a media report that said it would "temporarily shut down its operations" stating it is awaiting emergency liquidity support from the lenders' consortium.

Jet Airways will stop operations as of the night of April 17.

Over the last several weeks and months we have tried every means possible to seek funding, both interim funding as well as long term funding, to keep our operations going, but we were not successful.

With the rescue package for the cash strapped airline still elusive and the suspension of It's global operations most likely to continue even after April 18, Jet has started to book tickets for its passengers on other airlines.

Mehta's comments come after Jet informed all employees in a letter on Monday it was extending a suspension of global flights until Thursday due to a lack of funds. Hundreds of domestic flights too have been cancelled so far.

Meanwhile, JetPrivilege, the company that handles Jet's loyalty programme JPMiles, in a statement said, "We would like to assure our members that the value of their JPMiles are secure and remain intact as members still have the choice to redeem their JPMiles to fly free across more airlines and destinations anywhere".

"After 25 years of sharing the Joy of Flying with Indian and worldwide guests, Jet Airways has been forced to take this extreme measure as prolonged and sustained efforts with lenders and authorities did not yield the desired results", it said. It also failed to pay dues to lessors, which led to most of its flights getting grounded. Jet Airways sincerely and profusely appologises for the disruption to the travel plans of all its guests.

"The decision has been taken after a painstaking evaluation of all alternatives that were made available to the company and after receiving guidance and advice on the same from its Board of Directors", the crisis-hit airline said in a statement. The bid documents inter alia has solicited plans for a quick revival of the company. The bidding process will end on 10 May. "We are actively working to try and ensure that the bid process leads to a viable solution for the company".

CNBC-TV18 reported on Tuesday that Jet's lenders were set to invite binding bids from four shortlisted suitors that include private equity firms TPG Capital and Indigo Partners, Indian wealth fund National Investment and Infrastructure Fund (NIIF), and Etihad Airways, which already owns a minority stake in Jet. It is offering stake from 31.2 to 75 per cent of the company on a fully diluted basis. Jet said that it hopes to resume flying soon.

A year ago Jet had more than 120 planes operating, but the full-service airline has been hit by competition from low-priced carriers such as IndiGo and SpiceJet, along with high oil prices, fuel taxes and a weak rupee.

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