Aviation

India’s Jet Airways collapses due to funding shortage

Huntley Mitchell

Huntley Mitchell

The writing looked to be on the wall earlier this month, and now Jet Airways has suspended all its domestic and international operations, effective immediately.

The move comes not long after the 25-year-old Indian airline, which flies 600 domestic and 380 international routes, temporarily suspended all international flights until it met with lenders and try to secure funding, leaving passengers around the world stranded.

However, the meeting didn’t go as hoped for Jet Airways, with CEO Vinay Dube revealing in a statement that the consortium of lenders were unable to consider the airline’s request for interim funding.

“Since no emergency funding from the lenders or any other source of funding was forthcoming, it would therefore not have been possible for us to pay for fuel or other critical services to keep the operations going,” he said.

“Consequently, with immediate effect we are compelled to cancel all our domestic and international flights.

“This decision has been taken after painstaking evaluation of all alternatives and after receiving guidance and advice on the same from the board of directors of Jet Airways.”

Dube said the airline has tried every means possible over the past few weeks and months to secure funding to keep its operations going, but was left with no other choice than to suspend operations.

“A decision like this is never easy to make, but without the interim funding, which we have been repeatedly requesting for, we are simply unable to conduct flight operations in a manner that delivers to the very reasonable expectations of our guests, employees, partners and service providers,” he said.

Jet Airways will now await the bid finalisation process by SBI and the consortium of Indian lenders, and will continue to support the bid process initiated by the lenders.

For assistance, Dube said essential services needed to support Jet Airways guests and the re-commencement of flight operations will be kept onboard until further notice.

Guests who are booked on our flights with travel on future dates will be informed via text message email or phone call to the contact details listed in the booking.

Guests who are impacted by the temporary suspension of flight operations can request a refund for their confirmed bookings. Those who have booked through a travel agent are encouraged to reach out to them to process the refund.

“We sincerely and profusely apologise for the disruption to your travel plans,” Dube said.

“We would like to thank you for your continued patronage, support and loyalty over the years.

“We are hopeful that we will be able to bring the ‘Joy of Flying’ back to you soon.”

Jet Airways is the second airline to collapse in as many months, following the demise of Icelandic budget airline Wow Air in March.

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

You must be logged in to post a comment.

Travel Agents

What every travel agent can learn from actor Samuel Johnson

by Huntley Mitchell

Actor and charity founder Samuel Johnson had plenty of takeaways for travel agents at a recent conference, which you take away here.

Share

CommentComments

Aviation

Passenger plane carrying 233 makes emergency landing in cornfield

The pilots that pulled off this heroic landing are receiving more praise than our intern when he restocks the office Tim Tam supply, and that’s saying something.

Share

CommentComments

Tourism

REVEALED: All the winners from Virtuoso’s 2019 Best of the Best awards

Congratulations to all the exceptional travel companies (including a you-beaut Australian resort) that took home shiny gongs at Virtuoso’s Best of the Best awards!

Share

CommentComments

Tourism

Flavour of the Week: Contiki Australia announce new boss, TTNQ appoints CEO + MORE!

What better way to contemplate throwing in your resignation for greener pastures than by reading this week’s sure-to-make-you-jealous roundup of top-notch industry appointments?

Share

CommentComments

Aviation

Twitter melts over hot pilot after passenger “kind of” gets plane to himself

Twitter has some strong opinions about a viral video of a passenger getting a “private jet” experience. Not because the plane was empty, or because the airline said he didn’t fly on it, but because of a split-second encounter with a dreamy pilot.

Share

CommentComments

Tourism

Aussie influencer detained in Bali, forced to pay $40,000 over prescription medication

Between helping influencers avoid jail time and sorting out the guy who fly-kicked a scooter, DFAT has no doubt become well acquainted with Balinese police this week.

Share

CommentComments

Cruise

Australian entrepreneur dead after falling overboard from cruise ship

by Huntley Mitchell

In tragic news, an Australian man has died after falling overboard on a cruise ship bound for the US Virgin Islands.

Share

CommentComments

Travel Agents

Agent wrap: italktravel & cruise at home launches, TTC hosts Eden Ministry, win big with Brand USA + MORE

What’s better than reading about agents on cool famils and winning free stuff? Finally reaching Friday!

Share

CommentComments

Events

Tourism

WIN a gift hamper from the The Goods Tube: Just another reason to attend Travel DAZE

As if learning gems of knowledge and practical tips from the best in this business wasn’t enough, we have a few more tricks up our sleeve for Travel DAZE 2019.

Share

CommentComments

Events

Tourism

ATTN: Two weeks left to enter The Travel Awards 2019!

If you’re still planing on entering The Travel Awards 2019 but are yet to complete your submission, the time to get your s***t together is now!

Share

CommentComments

Tourism

Qantas, Webjet & Flight Centre among travel companies hardest hit by ASX fall

by Christian Fleetwood

Australian travel companies were among those on the receiving end of a drop in share prices at the opening of the ASX200 this morning.

Share

CommentComments

Hotels

Hotel wrap: Hilton’s big Canberra plan, Upgradus launches in Australia, New Bali beach club + MORE!

This week’s hotel wrap is so huge that it’s left Travel Weekly’s reporter with RSI in his fingers, palms and wrists.

Share

CommentComments