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Jet Airways last flight at 10:30 pm; ailing airline to shut down operations tonight

FE Online
Jet Airways, , Cash Crisis, Naresh Goyal, Bidding, Jet Airways Board Meeting

After lenders refused Jet Airways request for Rs 400 crore infusion, the debt-ridden airline on Wednesday decided to shut down the operations temporarily, the company said in a regulatory filing. The last flight of the airline would be operated at 10:30 pm tonight. The airline was expecting the funding to come through, even as the lenders didn t take a final decision yesterday on providing it with the emergency funds.

“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. Consequently, with immediate effect, Jet Airways is compelled to cancel all its international and domestic flights. The last flight will operate today”, Jet Airways said in an exchange filing.

“….the airline would like to express its sincere gratitude to all its employees and stakeholders that have stood by the Company in these trying times. We hope to bring the flying sun back into the skies”, Jet Airways also said.

Jet Airways CEO, Vinay Dube, had yesterday asked the banks for an immediate infusion of Rs 400 crore into the company, media had reported citing Civil Aviation Secretary. The board of the company has decided to ground the airline if the lenders gave no reply to the request, the reports from yesterday had said.

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On Tuesday, the lenders had assured that they would not drag the cash-starved airline to the National Company Law Tribunal (NCLT). The issue would be resolved by seeking investment bids, they had said.

It s not the apt time for the lenders of the airline to approach the tribunal to search for a solution, the report also said. The creditors can take the defaulter to the NCLT for resolution under the insolvency and bankruptcy code (IBC).

The founder Naresh Goyal and his wife have already stepped down from the management last month as a part of lender s debt resolution plan.

Meanwhile, embattled liquor tycoon Vijay Mallya on Wednesday took to social media once again, this time to express his solidarity with Jet Airways founder Naresh Goyal and repeat his own offer to repay all the money he owes to India s public sector banks.