India's oldest private airline Jet Airways cancels all flights, pilot says staff seek one more chance

The airline is more than Rs 8,000 crore in debt and is unable to pay its lessors, suppliers, oil companies and pilots. The staff hasn't been paid salaries for the past three-and-a-half months.

"Late last night, Jet Airways was informed by the State Bank of India (SBI), on behalf of the consortium of Indian Lenders, that they are unable to consider its request for critical interim funding. Since no emergency funding from the lenders or any other source is forthcoming, the airline will not be able to pay for fuel or other critical services to keep the operations going," Jet Airways said in a statement on Wednesday evening. "Consequently, with immediate effect, Jet Airways is compelled to cancel all its international and domestic flights. The last flight will operate today."

In March, the lenders had agreed on a Rs 1,500 bailout plan for the airline. However, Jet has been unable to access that amount till date.

The lenders now are looking for an investor to acquire up to 75 per cent stake in the airline and turn it around.

Jet Airways will now wait for the bid finalisation process by SBI and the consortium of Indian Lenders, who are looking for an investor to buy a majority stake in the airline and turn it around.

In its response to the airline, the lenders have said: “The Expressions of Interest (EOI) have been received and bid documents have been issued to the eligible recipients today. The bid documents inter alia has solicited plans for a quick revival of the company. The bid process will conclude on 10th May 2019 … We are actively working to try and ensure that the bid process leads to a viable solution for the company.”

"We hope to bring the flying sun back into the skies," the Jet statement said.

Boeing 777 commander and head of the Jet Airways pilots' union Karan Chopra said it doesn't make sense now to blame someone for the situation. The employees just want the chance to be able to take the airline back to the prominence it used to enjoy.

"Who is to blame? Is it the promoter who mismanaged the situation and then delayed so long in exiting that he brought us to this point? Is it us, for allowing him to do so? Is it the lenders who, though they are not bound to do so, could have saved us by a timely infusion of funds as promised? Or is it just kismet, and Jet Airways' time had come?" Chopra wrote in a blog on the NDTV website.

"Does it really matter anymore? Today we stand, unpaid for three and a half months, staring into a bleak future. For close to nine months now, the employees of this once proud company have stood by it through all the difficulties that it, and we, have faced. Today as well we are standing, our backs to the wall, with the wolves of bankruptcy at our throats," he said.

"All we ask is one more chance for our loyalty. Help us get to a position where we can work to get Jet Airways... back to the prominence it once enjoyed," he added.