Troubled Indian airline Jet Airways has briefly suspended all its home and worldwide flights after failing to search out contemporary funding.
The airline mentioned its final flight would function on Wednesday because it was not capable of pay for gas and different vital companies.
Jet Airways mentioned it had no selection however to droop the flights, however hopes to begin flying once more.
It has $1.2bn (£900m) debt and has been in talks with lenders for weeks.
With 123 planes, Jet Airways is India’s largest personal airline, however studies say that simply 5 planes have been in use.
In an announcement the airline mentioned it had been compelled to floor all its flights as a result of “extended and sustained efforts with lenders and authorities didn’t yield the specified outcomes”.
The Indian authorities had requested state-run banks to step in with a bailout plan for the airline – which employs 23,000 folks and was based by Naresh Goyal greater than 25 years in the past. He stepped down as chairman final month
Pilots, engineers, and floor workers haven’t been paid for months, and passengers have been left stranded world wide because of cancellations.
“Late final evening, Jet Airways was knowledgeable by the State Financial institution of India (SBI), on behalf of the consortium of Indian lenders, that they’re unable to think about its request for vital interim funding,” the airline mentioned.
“Since no emergency funding from the lenders or some other supply is forthcoming, the airline won’t be able to pay for gas or different vital companies to maintain the operations going. Consequently, with fast impact, Jet Airways is compelled to cancel all its worldwide and home flights. The final flight will function at present,” it added.
The banks have been looking for a bidder for the airline, which mentioned it will proceed to assist them of their efforts.
Etihad Airways already owns 24% of Jet Airways and is reported to have expressed an curiosity in taking extra management.
“Jet Airways is hopeful that it is going to be capable of carry the enjoyment of flying again to its company as quickly as attainable,” the airline mentioned.
It operated 600 home and 380 worldwide routes, together with out of London, Amsterdam and Paris, and had grown quickly earlier than it began to lose market share after the entry of low-cost airways like IndiGo & SpiceJet.
The UK’s Civil Aviation Authority tweeted recommendation to prospects, outlining completely different approaches for looking for refunds relying on how the flight was booked.
Jet Airways had mentioned earlier on Wednesday it was working to “minimise visitor inconvenience” through the use of its contact centres and social media groups.
“In parallel, the airline’s administration and its key stakeholders together with its consortium of lenders, proceed to work carefully in direction of resolving the present scenario,” a spokesman had mentioned.
“The airline regrets the inconvenience precipitated to its company,” they added.