Jet To Suspend All Flights Tonight, Fails To Get Emergency Funds: Reports

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    Embattled carrier Jet Airways decided to temporarily suspend all operations from Wednesday night, said news agency Reuters citing sources. The move comes after lenders rejected Jet’s request for additional funds. The cash-strapped airline had requested emergency funds worth Rs 400 crore from the State Bank of India-led consortium of lenders to stay afloat. With a debt of more than Rs 8,000 crore, the debt-laden airline owes money to lessors, suppliers, pilots and oil companies.

    “Bankers did not want to go for a piecemeal approach which would keep the carrier flying for a few days and then again risk having Jet come back for more interim funding,” one of the bank sources directly involved in Jet’s debt resolution process was quoted as saying in the Reuters report.

    The airline had already suspended its international operations till April 18 and it was operating only five planes, reported news agency Press Trust of India on Tuesday quoting Civil Aviation Secretary Pradeep Singh Kharola.

    Jet Airways founder Naresh Goyal earlier decided not to bid for acquiring a stake in the airline.

    Jet Airways shares fell 7.6 per cent on Tuesday to Rs 241.85 on the BSE.

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