Indian airline Jet Airways has temporarily suspended all its domestic and international flights after failing to find fresh funding. The airline said its last flight would operate on Wednesday as it was not able to pay for fuel and other critical services.
Jet Airways said it had no choice but to suspend the flights, but hopes to start flying again. It has $1.2bn (£900m) debt and has been in talks with lenders for weeks.
In a statement the airline said it had been forced to ground all its flights because “prolonged and sustained efforts with lenders and authorities did not yield the desired results”.
However, according to a Reuters report, lenders to the Indian carrier said on Thursday that they are “reasonably hopeful” that the bidding process for the grounded airline will end successfully.
“The lenders after due deliberations decided that the best way forward for the survival of Jet Airways is to get the binding bids from potential investors who have expressed EOI and have been issued bid documents on 16th April,” the lenders said on Thursday, referring to expressions of interest.
Reuters further quoted the lenders saying, “Lenders are reasonably hopeful that the bid process is likely to be successful in determining fair value of the enterprise in a transparent manner.”