Jet Airways to ground all operations temporarily from tonight as lenders refuse to extend required financial support

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Mumbai: With the lenders rejecting a lifeline of Rs 400 crore Wednesday Jet Airways, which has been on a wing and prayer since January, knowledgeable exchanges that it’s pressured to cancel all operations briefly. The airline will function its final flight tonight.

“With immediate effect, we are compelled to cancel all our international and domestic flights. The last flight will operate today,” Jet Airways knowledgeable the exchanges.

“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 mentioned.

Accordingly, the final flight will go away the Amritsar airport at 2230 hrs for New Delhi as per its flight schedule.

For the reason that 25 March decision to infuse Rs 1,500 crore into the airline is but to fructify, the as soon as main airline has been defaulting on funds, forcing its lessors to retake nearly all its planes and was working nearly six planes as of Tuesday.

 Jet Airways to ground all operations temporarily from tonight as lenders refuse to extend required financial support

Representational picture. Reuters.

An official announcement of grounding of operations is predicted anytime now because the Jet Airways board had Tuesday authorised chief govt Vinay Dube to make one final enchantment to the SBI-led consortium to get a life-line of Rs 400 crore Wednesday, earlier than taking a closing name on the longer term.

Jet would be the seventh airline to go down since Might 2014 and the 13th one after East West was shuttered.

In the course of the previous 5 years, airways like Air Pegasus, Air Costa, Air Carnival, Air Deccan, Air Odisha and Zoom Air have all gone stomach up at the same time as the federal government boasts of double-digit development for greater than 4 years in tow.

“The Jet Airways management’s request for Rs 400 crore emergency funds has been rejected,” banking sources advised PTI.

A supply on the Jet Airways additionally mentioned the airline was prone to shutter quickly because the banks haven’t prolonged it the required monetary assist.

“The airline has failed to garner the funds it was desperately looking for to continue operations,” he mentioned.

The airline is presently working solely 5 planes from 123 plane within the fleet until final December.

In keeping with sources, the federal government is sustaining distance from the Jet affairs citing the matter is a business choice of banks.

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