Jet Airways Suspends All Flights From Tonight, Fails to Get Rs 400 Crore Emergency Loan
File image of Jet Airways (Photo Credits: PTI)

New Delhi, April 17: Cash-strapped carrier Jet Airways is close to hit a commercial dead-end as the management's request for Rs 400 crore emergency funding has been turned down by all state-run and private lenders. The airlines, said top officials of the distressed flyer, has suspended all flights scheduled for tonight

The crisis-hit airlines had reached out to the government earlier in this week, seeking the sanctioning of emergency funds, apart from a loan of Rs 1,500 crore to keep the carrier afloat. Vijay Mallya Expresses Sympathy With Naresh Goyal, Alleges Discrimination By Govt.

Civil Aviation Secretary Pradeep Singh Kharola held several round of meetings over the past couple of days, particularly to review whether the Jet management should be sanctioned the immediate aid.

Officials privy to the matter, while speaking to reporters, have claimed that the Rs 1,500 crore loan, even if sanctioned by the State Bank of India, will form a small proportion to the debts and payables exceeding Rs 10,000 crore.

The fate of nearly 16,500 Jet employees hangs in balance, many of whom have not been paid salaries for the past few months.

The National Aviators Guild -- the largest union of Jet workforce -- had earlier threatened to launch a strike from April 15. However, after being informed by the management that it would disburse the pending salaries after receiving the "promised" loan of Rs 1,500 crore from SBI, the union decided to defer their protest.

Notably, the Jet has cancelled all international flights both to east and the west-end. The airlines' fleet has been brought down to 5 -- down from 191 in its heydays.