Jet Airways flew its last flight in India yesterday, 17th April 2019, after the debt-laden carrier reportedly decided to temporarily shut down its operations.
In its statement, the company said:
“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 was the oldest private airline in India which started its operations on 5th May, 1993.
In August last year, the airline dismissed media reports about its stake sale and that it cannot fly beyond 60 days. Later, the company also gave assurance that it was looking for options to meet its funding requirements.
There were reports of the airline defaulting on its employees’ payments after which Jet officials said that it paid salaries to 84% of its employees.
In November and December 2018, there were also the speculations of Tata group and UAE’s Etihad Airways taking over the ailing airline. These reports were later denied when Etihad said that it is not in any position to sink new equity into Jet Airways at this juncture.
On 25th March 2019, Jet Airways’ founder Naresh Goyal stepped down as chairman and his wife Anita Goyal resigned from the board.
On 3rd April 2019, the airline was forced to ground more than three-fourth of its fleet while it was still waiting for bail-out funds. It’s fleet size further decreased to less than 20 and it was decided that the airline will shut its operations if it does not get emergency funds.
After 25 years of its operations, the airline have apparently grounded all its planes.
Note: The initial headline stated Jet Airways is India’s oldest airline which has now been corrected to India’s oldest private airline.