Jet Airways has temporarily suspended all flights after the State Bank of India and consortium of lenders were unable to consider its request for interim funding.
In a statement, the Indian airline says that as no emergency funding from lenders or any other source was forthcoming, it would not be able to pay for fuel or other critical services to keep operations going.
International flights were cancelled and the last flight took off on 17 April, operating from Amritsar to Mumbai and Delhi.
Jet Airways says the decision was taken after a “painstaking evaluation of all alternatives that were made available to the company and after receiving guidance and advice on the same from its board of directors”.
Relevant authorities such as the Directorate General of Civil Aviation, Ministry of Civil Aviation, finance and other government institutions have been informed of the course of action.
The airline also says that the company has “tried every means possible” to seek interim and long-term funding but was left with no choice but to temporarily suspend operations.
In response to the announcement by Jet Airways, the State Bank of India and the consortium of Indian lenders say: “The Expressions of Interest (EOI) have been received and bid documents have been issued to the eligible recipients today. The bid documents inter alia has solicited plans for a quick revival of the company. The bid process will conclude on 10th May 2019 … We are actively working to try and ensure that the bid process leads to a viable solution for the company.”
Jet Airways has a fleet of 123 aircraft but reportedly had only been able to operate five of them.
It has £900 million of debt and last month, chairman Naresh Goyal resigned from the board, along with his wife Anita Goyal, and Kevin Knight, nominee director of Etihad Airways.