Jet Airways was able to fly only five aircraft on Tuesday. (File)
Jet Airways today decided to temporarily suspend all operations, according to news agency Reuters. The move comes after lenders rejected its request for additional funds.
The airline was able to fly only five aircraft on Tuesday, the bare minimum required according to the rules of the Directorate General of Civil Aviation and conditions of the Air Operating Permit (AOP), the document that permits a commercial airline to operate across the country.
Here are the LIVE updates on Jet Airways crisis:
The crisis at Jet, which owes vast sums to suppliers, pilots lessors and oil companies, has deepened in recent weeks as its lessors have scrambled to de-register and take back planes, in a sign the bailout plan had failed to assuage their concerns.
Jet will be the seventh airline to go down since May 2014 and the 13th one after East West was shuttered.
The airline had already suspended its international operations till April 18 and it was operating only five planes, reported news agency Press Trust of India on Tuesday quoting Civil Aviation Secretary Pradeep Singh Kharola.
“Bankers did not want to go for a piecemeal approach which would keep the carrier flying for a few days and then again risk having Jet come back for more interim funding,” one of the bank sources directly involved in Jet’s debt resolution process tells news agency Reuters.
Two sources at state-run banks tell news agency Reuters that the lenders had rejected the Rs 4 billion ($58 million) that Jet Airways had sought to keep itself temporarily afloat, while its lenders attempted to identify an investor willing to acquire a majority stake in the airline and attempt to turn it around.