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Jet Airways officially confirms its collapse as banks pull away

After months of being under the weather and turning all around for help, Jet Airways was finally grounded. The once-popular Indian carrier mentioned in an official statement released on Wednesday that they are finally suspending all the flights post failing to acquire the emergency funding pleaded from the banks in India.

Jet Airways has been on and off for months in terms of staying in business & this announcement comes after weeks of multiple speculations over the fate of this airline. In its statement, Jet Airways mentioned that taking this decision was particularly difficult. However, with no interim funding, this airline was simply in no position to conduct the flight operations.

Jet Airways collapse has been dubbed as the biggest business collapse in India following the failure seen for Kingfisher Airlines by Billionaire fugitive Vijay Mallya in the year 2012. This was a huge slash to the aviation industry in India given the fact that the current airline industry has been struggling to meet the soaring demands of air rides while keeping the flight costs minimal for the travellers.

This news also came down at a very inappropriate time for the Indian PM Narendra Modi while he is seeking access to a 2nd term of being the PM of India. With the Lok Sabha election set to end by 23rd May, the opposition parties did their part by criticizing the government as it failed to bring down the current unemployment rate in India with many more positions lost due to the shutdown of Jet Airways.

Late on Tuesday, Jet Airways mentioned that it received information from its lender’s consortium which was led by State Bank of India about no more provisioning of cash for running the business further. However, the company stated that this suspension of the flight operations is only temporary. Now, this absence of funds has jeopardized 20,000+ jobs.

The officials thanked the employees as well as stakeholders who stood by the airline when times were tough. The Jet Airways passengers shall be informed of this closure with emails as well as text messages which access to a way to claim the refund upon canceled flights. Jet Airways was founded by Naresh Goyal in the early half of the 1990s which went ahead and dominated the airline industry in India. This accounted for 20 percent of passengers carried by the Indian airlines for the year 2018.

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