With no funding coming forthwith to rescue it, Jet Airways is all set to suspend all operations temporarily from midnight on Wednesday. Founder chairman Naresh Goyal has already withdrawn from making a bid for a stake in the company.
Jet Airways has temporarily suspended all flight operations following lenders rejecting a Rs 400 crore emergency funding. In a statement announcing the suspension of its flight operations, Jet Airways said that it was in “constant engagement with the Directorate General of Civil Aviation and Ministry of Civil Aviation in this regard”.
“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 decided to go ahead with a temporary suspension of operations,” the airline said. The airline currently only operated five aircraft with over 25 flights.
Jet Airways had earlier applied to deregister another four Boeing 737 planes, reducing its operational fleet even further. Earlier in the day, civil aviation minister Suresh Prabhu had called for a review of issues related to Jet Airways. Among the other things discussed were the steadily increasing fares on other airlines and flight cancellations with Jet Airways steadily reducing its operations.
In the past few weeks, Jet Airways has been grounding planes as lessors have moved to de-register and take back their aircraft, even though the company’s lenders have sought expressions of interest from potential investors in the company.