Jet Airways ceases all operations as emergency funding bid fails
James ChappleJet Airways will “temporarily” cease all domestic and international operations after failing to secure the emergency funding it required to keep its aircraft flying.
The Indian carrier confirmed the move in a statement issued on Wednesday afternoon (17 April) following crunch talks with a consortium of its key lenders, led by State Bank of India.
“Since no emergency funding is forthcoming, the airline will not be able to pay for fuel or other critical services to keep operations going,” said Jet.
“Consequently, with immediate effect, Jet Airways is compelled to cancel all its international and domestic flights. The last flight will operate today (17 April).
“Over several weeks and months, the company has tried every means possible to seek both interim and long-term funding. Unfortunately, despite its very best efforts, the airline has been left with no other choice but to go ahead with a temporary suspension of flight operations.”
Jet said it would inform all prospective passengers via text or email and wished to “sincerely and profusely” apologise for any disruption to their travel plans.
“The airline would like to thank them for their continued patronage, support and loyalty over the years,” it added.
Lenders seeking 'viable solutions' for Jet
Jet’s lenders have confirmed expressions of interest had been received for the “quick revival of the company”. This process will run until 10 May, although it is unclear if lenders will be able to act on any viable rescue bid before the May deadline.
“We are actively working to try to ensure the bid process leads to a viable solution for the company,” the statement adds.
Jet suspended its Manchester-Mumbai service last month and cancelled all international operations late last week, including its Heathrow-Mumbai and Heathrow-Delhi flights.
India requires all airlines with an international flight programme to operate a fleet of at least 20 aircraft. Last week, Jet reportedly had just seven of its 123 aircraft in service.
The airline, which is reportedly mired in £900 million of debt, is understood to have already transferred its slots at Heathrow to Etihad, which has a 24% stake in the airline.
All Heathrow flights advertised for sale on Jet Airways’ website are listed as being operated by the Middle Eastern carrier.
Jet currently employs around 23,000 people.
Reuters reports a £166 million stop-gap loan, agreed with Jet’s lenders last month when the airline’s long-serving chairman Naresh Goyal stood down, fell through.
CAA guidance for Jet passengers
The CAA has issued guidance to passengers affected by Jet's ongoing troubles. Anyone who booked through an agent should speak to their agent in the first instance.
Any passengers travelling with Jet as part of an Atol-protected package should contact their package provider who will make alternative arrangements.
Those travelling on Jet tickets with one of the airline's codeshare partners should contact the airline providing the codeshare service.
Anyone who booked directly with Jet using a credit card can contact their card issuer for details of any protections that affords.
James Chapple
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