All over for Jet Airways? Ailing airline to shut down operations tonight; last flight at 10:30 pm

After yet another refusal of interim fund infusion proposal by its lenders, cash-strapped Jet Airways has finally decided to shut down its operations temporarily from today.

Jet Airways has a debt burden of more than Rs 8,000 crore. (Image: Jet Airways/ Facebook)

Jet Airways has finally decided to shut down its operations temporarily from today

Last fight of the private airline would be operated at 10:30 pm tonight

Airline's pilots' union threatened to seek resolution as salaries dues remained unpaid

Is it all over for the crisis-hit Jet Airways for the moment? After yet another refusal of interim fund infusion proposal by its lenders, cash-strapped Jet Airways has finally decided to shut down its operations temporarily from today, news agency Reuters reported. If the report is believed to be true, the last fight of the private airline would be operated at 10:30 pm tonight. The report quoted sources close to the development who informed that if Jet Airways does not get funds today, it will have to shut down its operation immediately. The private airline was expecting the funding to come through, even as the lenders did not take a final decision in Tuesday’s meeting to provide the company with the emergency funds. Jet Airways CEO, Vinay Dube, had yesterday asked the lenders and banks for an immediate infusion of Rs 400 crore into the company, reports citing Civil Aviation Secretary suggests. The board of the company had said that it would completely ground the airline in case lenders did not agree to infuse interim funds. The lenders, however, had assured that they would not drag the crisis-hit airline to the National Company Law Tribunal (NCLT) and would rather resolve the issue by seeking investment bids. Adding to the woes, the carrier's pilots union NAG on Tuesday threatened to seek resolution under insolvency law as salaries dues remained unpaid. With uncertainty mounting over the future course for the airline, which has been in operation for more than 25 years, its shares crashed nearly 19 per cent during the day amid reports that the carrier might temporarily suspend operations. “Discussions for reviving the airline are underway and nothing has been finalised as of now,” Punjab National Bank (PNB) Managing Director and CEO Sunil Mehta told reporters in New Delhi yesterday. Jet Airways has a debt burden of more than Rs 8,000 crore. Meanwhile, embattled liquor tycoon Vijay Mallya today took to social media once again, this time to express his solidarity with Jet Airways founder Naresh Goyal and repeat his own offer to repay all the money he owes to India's public sector banks.

Published at : 17 Apr 2019 06:25 PM (IST)

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