File photo. Photograph:( Reuters )
The airline has been defaulting on payments, forcing lessors to retake almost all its planes and it has been operating just about five planes since Tuesday
Jet Airways has decided to ground operations temporarily from Wednesday midnight after lenders refused its request for Rs 400 crore "emergency funds", sources told newswire PTI.
The struggling airways has informed the exchanges that it is "forced to cancel" all operations following banks refusal to extend funds. It will operate its last international flight tonight before temporarily stopping operations abroad.
The airline has been defaulting on payments, forcing lessors to retake almost all its planes and it has been operating just about five planes since Tuesday, down over 120 planes from last year.
Jet will be the seventh airline to go down since May 2014 and the 13th one after East West was shuttered. During the past five years airlines like Air Pegasus, Air Costa, Air Carnival, Air Deccan, Air Odisha and Zoom Air have all gone belly up even as the government boasts of double-digits growth for more than four years in tow.
An official announcement of grounding of operations is expected anytime now as the Jet Airways board had on Tuesday authorised chief executive Vinay Dube to make one last appeal to the SBI-led consortium to get a life-line of Rs 400 crore Wednesday, before taking a final call on the future.
"The Jet Airways management's request for Rs 400 crore emergency funds has been rejected," banking sources told PTI.
A source at the Jet Airways also said the airline was likely to shutter soon as the banks have not extended it the required financial support.
"The airline has failed to garner the funds it was desperately looking for to continue operations," he said.
The airline is currently operating only five planes from 123 aircraft in the fleet till last December.