Jet Airways shuts down operations

“With deep sadness and a heavy heart we would like to share that, effective immediately, we will be suspending all our domestic and international flight operations,” tweeted the official handle of Jet Airways as they released the official statement.

State Bank of India (SBI) last month agreed to bail it out in a complex deal that involved the banks taking a majority stake and providing a fresh loan of $217 million, while continuing to look for a new investor. That loan never materialised, gradually crippling the 25-year old airline’s operations.

“Late last night we were informed by SBI, on behalf of the consortium of Indian lenders, that they are unable to consider our request for interim funding. Since no emergency funding from the lenders or any other source of funding was forthcoming, it would therefore not have been possible for us to pay for fuel or other critical services to keep the operations going,” the statement continued to read.

“Consequently, with immediate effect we are compelled to cancel all our domestic and international flights. This decision has been taken after painstaking evaluation of all alternatives and after receiving guidance and advice on the same from the Board of Directors of Jet Airways,” it added.

“It is very unfortunate that we have to see this day,” said Karan Chopra, president of Jet Airways’ pilots union, National Aviators Guild (NAG), after Jet announced the temporary closure of domestic operations.

“We are hoping that this is a temporary suspension of operations and, once the bids are out, which I am hopeful of, the operations will resume,” Chopra said, adding that he will continue at the airline for the time being.

Jet Airways has over 16,000 employees, including about 1,300 pilots in workforce

Saurabh Chopra

With a blend of vivid areas of interest, Saurabh is a passionate reader and a news writer. He is always enthusiastic and proactive in finding the latest in his fields of interest. Saurabh is also a keen observer in the economic and business pits and falls.

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