Indian airline Jet Airways has announced the suspension of all domestic and worldwide operations.
Bankers and an Indian government official said lenders are trying to line up funds to keep aloft the once-dominant Indian airline, whose shares earlier on Tuesday slumped to their lowest levels since August 2015.
JetPrivilege recently entered into a strategic partnership with Indian Oil Corporation Limited (IOCL) where members can now earn and redeem JPMiles for their fuel transactions. Meanwhile, Jet Airways, on its website, has said that it is working to handle schedule adjustments including offering re-accommodation choices or extending full refunds as applicable.
Two sources at state-run banks told Reuters that the banks had rejected a request for 4 billion rupees ($58 million) from Jet to keep itself temporarily afloat. "Interim funding has not been forthcoming thus far, & as a result of this we have extended cancellation of global operations through Thursday, April 19".
"Late last night, Jet Airways was informed by the State Bank of India (SBI), on behalf of the consortium of Indian lenders, that they are unable to consider its request for critical interim funding", the airline said.
It was not immediately clear who else might bid for the company.
The carrier, however, said it will now await the bid finalisation process by the lenders.
"Since no emergency funding from the lenders or any other source is forthcoming, the airline will not be able to pay for fuel or other critical services to keep the operations going", the airline said.
Easter is a busy period for families travelling between the United Kingdom and India.
"Even though Jet was a major competitor to Kingfisher at the time I feel sorry to see such a large private airline on the brink of failure when Government used 35K crores of public funds to bail out Air India". ". the sale process will take some time and will throw up several more challenges for us, many of which we don't have the answers to, today".
"For example, we don't have an answer today to the very important question of what happens to the employees during the sale process", he said.
Essential services needed to support guest services and the re-commencement of the flight operations will be kept onboard until further notice. Since our guests, partners and suppliers have also stood by us through thick and thin, we must do whatever little wecan, under the circumstances to ease their difficulties.
Naresh Goyal quits as Jet Airways chairman, stake slashed to 25%. We must be given another chance.