India’s Jet Airways collapses due to funding shortage

Jet Airways is one of India's largest operators and just completed 25 years of operation, founded in May 1993 by Naresh Goyal. Currently is going through financial crisis combined with crude high and the rupee getting weak against the dollar.

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.

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