Jet Airways today announced that it would cease all flight activity effective tonight (April 17, 2019) because the airline has not been able to acquire necessary funding to pay for operations such as fuel.
The airline has operated fewer than 40 domestic flights daily since canceling all international operations last week, using 7 aircraft down from 120 or so last year.
Here’s the announcement from Jet Airways:
Jet Airways announces temporary suspension of flight operations
All domestic and international flights to be cancelled effective today
Mumbai, April 17th, 2019:
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.
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.
This decision has been taken after a painstaking evaluation of all alternatives that were made available to the Company and after receiving guidance and advice on the same from its Board of Directors. Jet Airways has informed the DGCA, and the Ministries of Civil Aviation and Finance and other relevant government institutions, of this course of action.
Over the last several weeks and months, the company has tried every means possible to seek both interim and long-term funding. 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.
This has been a very difficult decision but without interim funding, the airline is simply unable to conduct flight operations in a manner that delivers to the very reasonable expectations of its guests, employees, partners and service providers.
After 25 years of sharing the Joy of Flying with Indian and international guests, Jet Airways has been forced to take this extreme measure as prolonged and sustained efforts with lenders and authorities did not yield the desired results.
Essential services needed to support guest services and the re-commencement of the flight operations will be kept onboard until further notice.
Jet Airways will now await the bid finalisation process by SBI and the consortium of Indian Lenders.
In its response to the airline, the lenders have said, “The Expressions of Interest (EOI) have been received and bid documents have been issued to the eligible recipients today. The bid documents inter alia has solicited plans for a quick revival of the company. The bid process will conclude on 10th May 2019 … We are actively working to try and ensure that the bid process leads to a viable solution for the company.”
Jet Airways will continue to support the bid process initiated by the lenders.
The airline will inform all guests about the temporary suspension of flight operations via text message or email to the contact details listed in their bookings.
Jet Airways sincerely and profusely apologises for the disruption to the travel plans of all its guests. The airline would like to thank them for their continued patronage, support and loyalty over the years.
Jet Airways is hopeful that it will be able to bring the Joy of Flying back to its guests as soon as possible. Over the past 25 years, Jet Airways has established itself as India’s airline of choice and the flag-bearer of warm Indian hospitality around the world. The airline has proudly fuelled India’s economic engine, enabling business travellers and tourists alike to traverse the length and breadth of India and the world. Even during the toughest of times, Jet Airways employees have worn a smile on their face and put their duty to its guests and the nation first.
Above all, 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.
Conclusion
Jet Airways began to have financial issues last year and lessors started to ground and repo planes due to unpaid bills in the first quarter of 2019. The last few weeks have been painful to watch how the airline has disintegrated plane by plane.
This is the end of Jet Airways as we know it. Interested parties have until May 10 to file their bids but for what? A bankrupt airline more than billion in red without employees, routes or planes?
This is another great investment by Etihad Airways. Their Etihad Airways Partners was supposed to take over the world. Alitalia, Airberlin (+ Niki) and Jet Airways are bankrupt, although one of these is still flying. Etihad Regional folded and Air Serbia is apparently not doing too well either. Etihad has lost close to five BILLION dollars over the past three year due to write offs and losses from operations.
Etihad owns majority, if not all, of Jet’s frequent flier program JetPrivilege. I would assume that it will go the same way as TopBonus (Airberlin’s frequent flier program) that was also owned by Etihad. The program was liquidated.
