Jet Airways (JAI, Mumbai International) has announced that it will suspend all operations at the end of Wednesday, April 17, 2019, as it is unable to foot the fuel bills and other immediate expenses.
"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. Consequently, with immediate effect, Jet Airways is compelled to cancel all its international and domestic flights," the airline said in a statement.
On April 16, a consortium of creditors led by State Bank of India declined the airline's request for an immediate injection of INR4 billion rupees (USD57.6 million) to avoid imminent grounding.
The airline added that it will "await the bid finalisation process by SBI and the consortium of Indian Lenders" and hopes to resume operations once new funding is available.
On the last day, the airline's fleet was down to just five ATR72-500s flying on regional routes from Delhi International.
Meanwhile, the consortium of lenders has invited four investors to submit binding bids to acquire between 31.2 and 75% of shares in struggling Jet Airways (JAI, Mumbai International), The Economic Times has reported.
Investors who submitted valid Expressions of Interest are Etihad Airways, Indigo Partners, TPG Capital, and government-backed National Investment and Infrastructure Fund (NIIF). They have been given until May 10, 2019, to formalise their interest and submit binding bids.
Founder and ex-Chairman Naresh Goyal earlier dropped his offer backed by two funds after Etihad and TPG Capital threatened to walk out of any deal that would also include Goyal.
Lessors have already moved to de-register nearly fifty aircraft, while US EXIM Bank (United States of America) issued a notice to repossess all ten B777-300(ER) operated by Jet Airways. While the airline owns the Boeing widebodies, they were all acquired with EXIM Bank guarantees.
