MUMBAI: Jet Airways on Wednesday said its cancelled all the flights temporarily after failing to secure emergency funding of Rs 400 crore from its lender.
On Tuesday night, Jet Airways was informed by State Bank of India, on behalf of the consortium of lenders, that they were unable to consider its request for critical interim funding.
After a board meeting on Tuesday, the management had authorised chief executive Vinay Dube to make one last appeal to the lenders for an emergency Rs 400 crore funding, and if not the demand is not met, take a final call on the future of the airline on Wednesday.
“Since no emergency from its lenders or any other source is forthcoming, the airlines will not be able to pay for fuel or other critical services to keep the operations going. Consequently, with the immediate effect, Jet Airways is compelled to cancel all its international and domestic flights”, Jet said in a statement on Wednesday.
The Jet also expressed the hope that the airlines would resume function once again in the future post the bid finalisation process by SBI and other lenders.
The Airlines is battling for survival and has yet to receive a loan of about Rs 1500 crore as part of a rescue deal with government-owned lenders.
An SBI-led consortium has taken over the airlines after chairman and founder Naresh Goyal stepped down from the Board on March 25.
Jet Airways is facing the worst financial crisis of its 25-year existence. The airline has grounded about half its fleet, cancelled flights, delayed salaries and defaulted on the loan and other payments.
With inputs from ANI, PTI