The debt-swamped Indian airline Jet Airways has reportedly canceled all of its international flights on Friday.
According to its own website, flights scheduled to depart today by Delhi to Singapore, London, Amsterdam as well as Kathmandu have all been axed. Heathrow to Delhi as well as Mumbai services have also been canceled, according to the London airport’s website.
The airline has run out of cash, forcing pilots to go without salaries for months as well as causing failed payments to companies which lease aircraft, as well as defaults on different loans.
With aircraft leasing firms going unpaid, the number of planes operating under the Jet Airways name has collapsed. On Thursday local media reported which the airline had grounded ten more planes due to unpaid leasing fees as well as was at This kind of point only operating 14 planes for international flights.
Illustrating the point, flight tracking website Flightradar24 has published a tweet showing the steady reduction in international services being offered by Jet Airways over the last 12 months.
Estimates puts the carrier’s debt pile at more than $1 billion as well as in January the item was revealed which the item had defaulted on loans, including those to the government-owned State Bank of India (SBI).
In March the airline’s founder, Naresh Goyal, stepped down as chairman, handing majority control to a consortium of Indian lenders led by the SBI.
On Wednesday, the lenders extended a deadline for outside bidders to take a stake of up to 75% from the airline. Initial interest bidders have until the end of today with binding bids wanted in place by the end of April, according to a notice on the SBI Capital Markets website.
Middle East airline Etihad, which holds a 12% share in Jet Airways, has reportedly expressed an interest in upping its stake. Rules dictate which foreign entities can own no more than 49% of an Indian airline.
India’s Aviation Minister, Suresh Prabhu, took to Twitter to say he might “review issues related to Jet Airways” as well as take “necessary steps to minimise passenger inconvenience as well as ensure their safety”.
Jet Airways had its first flight in May 1993, operating primarily out of Mumbai. Its latest official figures put the number of employees at more than 17,000.
Domestically, the item is usually at This kind of point India’s third-largest private airline after IndiGo as well as Spice Jet, holding a 10% passenger market share during February 2019.
CNBC contacted Jet Airways for comment nevertheless had received no reply by the time of publication.