Indian airline Jet Airways has announced a temporary suspension of all domestic and international flights this Wednesday after rejecting a group of lenders, including the State Bank of India, to refinance its debt.
"Since there are no emergency funds from lenders or any other source, the airline will not be able to pay fuel or other key services to maintain operations." Consequently, Jet Airways has the immediate effect of canceling all its international and domestic flights, "he said in a statement.
"The last flight will be done today," he added.
Jet Airways, one of the largest and oldest airline companies in India, has experienced the biggest crisis over recent months due to the lack of liquidity and the increase in debt to suppliers.
Nearly a month ago, the aviation company decided to stop with its president and founder Naresh Goyal as a member of the board of directors, within the rescue plan adopted by the company and drawn up by a lender consortium, led by the state bank of India, to restructure its debts.
In addition, the aviation company was awaiting instant help of over $ 200 million to return to normal business, threatened by stress.
However, the Indian state bank, "on behalf of the lender consortium, informed Jet Airways that it could not consider its critical funding requirement," the Indian company said.
Hundreds of pilots, crew members and engineers organized a protest yesterday, announcing the start of the strike until they are paid salaries for at least three months.
Over the past few months, the company has been trying to find the medium and long term funding possible by all means. Unfortunately, despite their greatest efforts, the aviation company has no choice but to continue with the temporary suspension of flight operations, "the airline said.
With more than a hundred national and international destinations, an Indian air carrier, founded in 1993, has managed to operate more than a hundred aircraft in about 500 daily flights, according to airline companies.