Jet Airways suspends all flights as lenders reject Rs 400-cr funding

Jet Airways suspends all flights as lenders reject Rs 400-cr funding

"Jet Airways is compelled to cancel all its global and domestic flights".

Mallya said it was sad many airlines like Jet Airways had to bite the dust in India.

An analysis of the latest data disclosed by the Directorate General of Civil Aviation shows that Jet's lessors have, so far, sought to deregister and repossess at least 48 planes operated by Jet.

In internal communication, Jet Airways chief executive Vinay Dube said the lenders could not reach a consensus on the emergency funding and the board would meet again on Tuesday to further deliberate on the matter.

The airline said it was forced to take the step as a consortium of lenders had turned down its request for emergency interim funding. It's, however, not clear whether the airline's decision shut operations is temporary.

It added that this has been a very hard decision but without interim funding, the airline was simply unable to conduct flight operations in a manner that delivers to the very reasonable expectations of its guests, employees, partners and service providers.

Jet Airways on Wednesday announced temporary suspension of all its worldwide and domestic flights, with the last flight slated to operate between Amritsar and Mumbai tonight.

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In a series of tweets, Mallya even expressed his sympathies for the cash-strapped Jet Airways and eld the government responsible for the crisis surrounding. Calling Jet a major competitor to now defunct Kingfisher Airlines (KFA), Mallya also questioned the huge sum that was used to bail out debt-laden Air India.

In its statement on Wednesday, the airline thanked its loyal customers for their patronage and support over 25 years and said it "sincerely and profusely apologizes for the disruption to the travel plans of all its guests".

The airline, which has a huge debt pile on its books, is in the midst of a stake sale process with bids being scrutinised for the final round.

A report by Economic Times said that SBI Capital Markets had the mandate for Jet Airways sale on behalf of the SBI-led consortium of the domestic lenders to the debt-ridden private carrier.

India's aviation secretary told media late on Tuesday that Jet had only five aircraft flying on the day and that 90 percent of its slots stood vacant.

I invested hugely into Kingfisher which rapidly grew to become India's largest and most awarded airline.

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