It operated 600 domestic and 380 global routes, including out of London, Amsterdam and Paris, and had grown rapidly before it started to lose market share after the entry of low-priced airlines like IndiGo & SpiceJet. Tonight 9W-2502 (Amritsar-Bombay-Delhi) will be last flight of beleaguered airline before a temporary closure.
"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 made a decision to go ahead with temporary suspension of operations", the airline said.
Jet, which did not respond to requests for comment, saw its shares fall by as much as 18.5 percent on Tuesday after Indian media reported that Jet's management had advised the airline's board to temporarily suspend the company's operations.
The assurance from the government came on a day when Jet Airways wrote to the Prime Minister's Office, the Ministries of Finance and Civil Aviation and the Chief Minister of Maharashtra stating that it needed an urgent induction of funds, without which it will not be able to continue flying.
Fugitive businessman Vijay Mallya on Wednesday extended his "sympathies" for debt-ridden Jet Airways and slammed the government for "discriminating" between private airlines and state-owned airlines (read Air India).
The airline, saddled with roughly $1.2 billion of bank debt, has been teetering for weeks after failing to receive a stop-gap loan of about $217 million from its lenders, as part of a rescue deal agreed in late March. "The last flight will operate today", Jet Airways said in the filing. Consequently, with immediate effect we are compelled to cancel all global flights as well as our domestic flights.
The airline will now await the bid finalisation process by SBI and the consortium of Indian lenders, Jet said, adding that it will continue to support the bid process initiated by the banks.
It was not immediately clear who else might bid for the company.
The airline had 119 planes on December 31, when it first defaulted on some of its more than $1 billion in debt. "We are actively working to try and ensure that the bid process leads to a viable solution for the company".
Jet Airways' founder Naresh Goyal has decided not to bid for acquiring a stake in the cash-strapped airline, sources said on Tuesday.
The UK's Civil Aviation Authority tweeted advice to customers, outlining different approaches for seeking refunds depending on how the flight was booked.
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