After failing to secure new funding to cover its fuel and critical service costs, India’s Jet Airways has temporarily suspended across its network.
The largest private airline of India has around USD $1.2 billion in debt as it continues its talks with lenders. In a statement, the airline said: “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.”
As the airline shut down, efforts by the Indian government to secure funding from state-run banks with a bail-out plan have ended in no results.
"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.
JetAirways financial struggles have been known since November 2018, when it reported increasing losses and cost cutting measures. Among the reported missed payments include fuel costs, employee salaries, and leasing rates. On April 12, East Indian and International routes were suspended followed by all routes a few days later on April 17.
First incorporated in 1992, Jet Airways had been operating since 1993 from its headquarters in Mumbai. With 115 aircraft, it served 52 destinations with around 23,000 employees.