On a more personal note directed at Jet Airways founder Goyal and his wife Neeta, the UB Group chief expressed his sympathy for the troubles being faced by the cash-strapped private airline, which has been forced to cancel a string of flights amid a mounting crisis."Even though we were fierce competitors, my sympathies go out to Naresh and Neeta Goyal who built Jet Airways that India should be extremely proud of. The last flight will operate today", it said, adding that the decision would take "immediate effect".
In a press release, the airline added that lenders had said, "The Expressions of Interest (EOI) have been received and bid documents have been issued to the eligible recipients today".
"This has been a very hard decision but without interim funding, the airline is simply unable to conduct flight operations in a manner that delivers to the very reasonable expectations of its guests, employees, partners and service providers", it added. The lenders have rejected Jet Airways' request for Rs 400 crore lifeline.
Late last night we were informed by SBI, on behalf of the consortium of Indian lenders, that they are unable to consider our request for interim funding of INR 983 crores.
This comes after the airline had already grounded most of its fleet and temporarily cancelled large amounts of flights, including all global services.
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The carrier said it had tried its best to secure interim funding.
"Our load factor could increase to up to 10 to 12 per cent as their passengers are being accommodated on out flights on global routes", Air India spokesperson Praveen Bhatnagar told Bangalore Mirror.
Their decision against providing Jet with emergency funding indicates one thing: they don't think it makes financial sense to keep Jet running in its current state.
Before its last flight tonight from Amristar to Delhi, Jet's fleet diminished to just five aircraft and 37 flights from 123 planes and some 650 daily flights till December last. The bidding process will end on 10 May. Meanwhile, Jet Airways, on its website, has said that it is working to handle schedule adjustments including offering re-accommodation choices or extending full refunds as applicable.
"Lenders are committed to a revival plan for Jet Airways", Punjab National Bank's Managing Director Sunil Mehta said.