Jet Airways cancels all flights causing passenger chaos

CANCEL Flights stopped by Jet Airways

"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", the airline said. The last flight of Jet Airways will take off at 10.30 pm today. Jet Airways said that it has informed the Directorate General of Civil Aviation, and the Ministries of Civil Aviation and Finance and other relevant government institutions, of this course of action.

Fugitive businessman Vijay Mallya also expressed solidarity with Jet Airways founder Naresh Goyal.

Jet Airways said essential services needed to support guest services and the re-commencement of the flight operations will be kept onboard until further notice. "This has been a very hard decision but without interim funding, the airline is simply unable to conduct flight operations in a manner that delivers to the very reasonable expectations of its guests, employees, partners and service providers", Jet said in the statement. Going ahead, Jet Airways said it would now await the bid finalisation process by SBI and the consortium of Indian lenders.

In its response to the airline's request for immediate funds, the lenders said, "The Expressions of Interest (EOI) have been received and bid documents have been issued to the eligible recipients today".

Jet Airways pilots body, the National Aviator's Guild, on Monday appealed the SBI to release Rs 1,500 crore, which was proposed to be infused in the ailing carrier as part of a debt-restructuring plan as of March. Sources in the government told PTI that lenders are discussing ways to revive the crisis-hit carrier and fresh funds are likely to be infused shortly.

These include private equity firms TPG Capital and Indigo Partners, Indian sovereign wealth fund National Investment and Infrastructure Fund (NIIF), and the UAE's Etihad Airways, which already owns a minority stake in Jet, it said. "Why don't Banks take the money I offered first", he questioned. Representatives of various lenders to Jet Airways are also understood to have discussed issues related to the beleaguered airline with Financial Services Secretary Rajiv Kumar. According to Kharola, the airline operated with five aircraft on Tuesday. Sad that so many Airlines have bitten the dust in India. Once deregistered, lessors are free to reclaim a plane and lease it to another airline anywhere in the world.

It has repeatedly defaulted on loans and failed to pay staff in recent months.

As of 1415 GMT on Tuesday, Jet listed on its website roughly three dozen flights that it plans to operate on Wednesday.

Shares in the company, which have tumbled about 60 percent in the previous year, closed on Tuesday at 240.50 rupees a share.

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