Due to financial constraints, Jet Airways has announced the closure of the facility temporarily. After refusing to provide an emergency fund of Rs 400 crore by the banks, the company said that all domestic and international flights are being canceled with immediate effect. The company lacks funds for fuel and other expenses. The last flight will fly tonight. The company has hoped to be able to serve the passengers again soon. Jet Airways last flight will be from Amritsar to Mumbai today.
The airline company, which was struggling for cash crisis for 4 years, had demanded an amount of Rs 400 crore from the debtor for an emergency fund, but the group of lenders led by SBI turned down the company’s offer. The number of flights had already been very limited as the employees did not pay rent for salaries and lease planes. Now the company had no choice but to shut-down. After the crisis of Jet Airways, many politicians in India have mocked PM Modi for the collapse of MNC like Jet airways, BSNL, MTNL, India post etc.
Jet Airways has said in the information sent to the stock exchanges, “We are forced to cancel all our international and domestic flights with immediate effect. Because of not getting the Emergency Fund from the lenders and any other sources, due to non-payment of fuel and other important services, the airline will not be able to continue its operations.
In the meeting held on Tuesday, the company’s board authorized the CEO Vinay Dubey to take the final decision. Only 5 of the company stuck in heavy debt remained in operation at this time. The 25-year-old airline company has a debt of more than Rs 8,000 crore. State Bank of India had informed Jet Airways on behalf of the lending group of banks late last night that they were unable to consider the request to provide the airline’s interim fund. The airline has given this information in its statement.
If the company closes, then the job of 20 thousand people will go away. The employees have protested in Mumbai before, where the company is headquartered. Some employees are asking the government to intervene to save the airlines who came to the brink of collapse. They are also demanding the earliest payment of outstanding salaries.
