Air India CMD Ashwani Lohani said on Wednesday that the temporary closure of Jet Airways is a setback for Indian aviation and a sad day for all those in the business of flying.

With lenders not extending emergency funds, cash-starved Jet Airways, which has been flying for over 25 years, Wednesday announced temporary suspension of operations.

"While sustained mismanagement definitely contributed, the fact remains that in the entire aviation eco-system, it is the airline that invariably remains at the receiving end while all other stakeholders make money," Lohani said in a Facebook post.

According to him, it is a sad day for all those in the business of flying in the country to witness a fine airline closing shop.

"We have in the past witnessed many airlines shutting shop and it is time to appreciate that the razor thin margins which airlines are forced to operate with in a competitive environment, results in a scenario that encourages unsustainability," he noted.

Lohani, who is helming state-owned Air India for the second time, also said the issue has no easy solutions, yet a solution would need to be found.

Air India, Jet Airways and Vistara are the only three full service carriers in the country.