Jet Airways to stop operations from tonight

Cash-strapped Jet Airways has decided to suspend all its operations from Wednesday (April 17) night after the consortium of lenders led by State Bank of India, turned down its request for emergency funds, said an NDTV report.

The airline owes ₹8,000 crore to lessors, pilots and oil companies.

The fleet as per a report in Business Standard was down to five planes.

The airline had sought emergency funds worth ₹1500 crore from the banks’ consortium. The National Aviators Guild, the pilots’ organisation of the airline, had announced a strike recently but went back on it after the Prime Minister’s office asked the banks to expedite the cash infusion process.

SBI sources had earlier stated that the consortium banks were not on consensus regarding the lending as the airline management was yet to come up with a ‘money utilisation plan.’

In a tweet, Vijay Mallya, dubbed Jet’s fate as ‘airline Karma’ comparing it with the doom of his Kingfisher airlines which shut down due to non-repayment of debts.

I invested hugely into Kingfisher which rapidly grew to become India’s largest and most awarded airline. True, Kingfisher borrowed from PSU Banks as well. I have offered to pay back 100 percent but am being criminally charged instead. Airline Karma ?

— Vijay Mallya (@TheVijayMallya) April 16, 2019