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Lenders reject Jet Airways funding request, flights grounded: Sources

File photo. Photograph:( Reuters )

WION Web Team New Delhi, Delhi, India Apr 17, 2019, 06.01 PM (IST)

Cash-strapped Jet Airways which had requested for Rs 400 crore funding from banks as a form of "emergency liquidity support" has been rejected, PTI sources said.

Jet Airways has temporarily halted operations after banks rejected the debt-laden carrier's request for emergency funding, three sources familiar with the matter told Reuters newswire on Wednesday.

Jet, in a filing to SBI-led lenders had said that it needed the money to keep operations running. The beleaguered airline has only five planes operating at the moment, down from 120 planes last year.

On Monday, the airline in a letter to its employees had said it planned to extend its suspension of international flights until Thursday as it had not received any interim funding from lenders.

The airline founder Naresh Goyal opted out of the bidding for stake acquisition in the airline as the crisis-hit carrier continued to slide.

Last month, Goyal and his wife Anita Goyal had stepped down from the board of the airline, which has more than Rs 8,000 crore in debt.