"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".
Jet Airways' founder Naresh Goyal has decided not to bid for acquiring a stake in the cash-strapped airline, sources said on Tuesday.
"Every time I say that I am willing to pay 100 percent back to the PSU Banks, media say I am spooked, terrified etc of extradition from the U.K.to India". Jet Airways said that it has informed the Directorate General of Civil Aviation, and the Ministries of Civil Aviation and Finance and other relevant government institutions, of this course of action.
Troubled Indian airline Jet Airways has temporarily suspended all its domestic and global flights after failing to find fresh funding.
Till late night, it was not clear whether the banks were willing to provide money to the airline to enable it to continue operations. Sad that so many Airlines have bitten the dust in India.
Civil Aviation Secretary Pradeep Singh Kharola said yesterday that the airline has sought emergency funds worth around Rs 400 crore from banks and that the matter is between the carrier and the reluctant lenders. "Unfortunately, despite its very best efforts, the airline has been left with no other choice today but to go ahead with a temporary suspension of flight operations", the filing said. Goyal and his wife Anita Goyal had already stepped down from the board of the airline.
Jet Airways is all set to end its operations from tonight after the ldenrs rejected its appeal for additional funding to stay afloat. "The last flight will operate today", it said, adding that the decision would take "immediate effect".
In an email to its employees, Vinay Dube also extended the cancellation of its west-bound flights, to and from Amsterdam, London, and Paris until 19th April.
"Lenders are committed to a revival plan for Jet Airways", Punjab National Bank's Managing Director Sunil Mehta said. "We also appeal Prime Minister Narendra Modi to save 20,000 odd jobs at the airline", National Aviator's Guild ( NAG) vice president Adim Valiani told reporters at the airline's headquarter, Siroya Centre, in Monday.
Jet's pilots along with engineers and senior staff were last paid for December 2018. The crisis-hit airline has also defaulted on the March salary of other categories of employees as well.
"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". A consortium led by the State Bank of India is in active talks with several parties regarding a sale of up to 75% of Jet Airways' stake.