Jet Airways to suspend operations from today amid lack of funds

Darnell Taylor
April 17, 2019

True, Kingfisher borrowed from PSU Banks as well.

The airline said its last flight would operate on Wednesday as it was not able to pay for fuel and other vital services. Mallya added in a follow-up tweet. "Why don't Banks take the money I offered first?" "It will help them to save Jet Airways if nothing else", the liquor baron said.

"I invested hugely into Kingfisher which rapidly grew to become India's largest and most awarded airline". Not recognised and instead slammed in every possible way.

Speaking to newspersons after an interaction with Rajiv Kumar, Secretary, Department of Financial Services, Sunil Mehta Punjab National Bank Managing Director & CEO, said: "Discussions for reviving the airline are under way and nothing has been finalised as of now". "Double standards under NDA", read another tweet. "It is not a home loan, it is an airline", one of the people in the know of the matter said. "Jet Airways will now await the bid finalisation process by SBI and the consortium of Indian Lenders", a spokesperson said.

Jet's shares have been falling since reports emerged that the airline has failed to secure emergency funding. While the news are yet to be made official, Indian media already reports four companies have been shortlisted: Indigo Partners, National Infrastructure and Investment Fund (NIIF), TPG Capital, Indigo Partners, and Etihad Airways, which now holds 12% stake in the airline. Goyal and his wife Anita Goyal had already stepped down from the board of the airline. The development came amid its pilots' union appealing the lenders and the prime minister to the save the debt-ridden airline.

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The UK's Civil Aviation Authority has set up a page offering advice to those affected by cancellations.

Jet Airways said it had no choice but to suspend the flights, but hopes to start flying again.

"In the said communication, we have highlighted the specific areas that will be immediately impacted, should the funding not be forthcoming".

Separately on Wednesday, two sources at state-run banks told Reuters news agency that the banks had rejected the 4bn rupees ($58m) that Jet had sought to keep itself temporarily afloat, while its lenders attempted to identify an investor willing to acquire a majority stake in the airline and attempt to turn it around. While the airline had requested at least Rs 1,000 crore from SBI on Monday, the amount was further reduced given SBI's reluctance to infuse the funds. The Guild also postponed their scheduled strike over the non-payment of salaries.

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