India’s Jet Airways collapses as banks pull the plug – CNN


The once-mighty Indian carrier said in a statement Wednesday that it was suspending all flights after failing to secure emergency funding from the country’s banks.
The airline has been struggling for months to stay in business and the announcement follows weeks of speculation over its fate.
“This has been a very difficult decision but without interim funding, the airline is simply unable to conduct flight operations,” Jet Airways said in statement.
The company said it was informed late Tuesday by a consortium of lenders that they would not be able to provide new funding. Jet Airways was not able to find another source of cash.
Jet Airways described the suspension of flights operations as temporary, but the absence of funding puts more than 20,000 jobs at risk.
Debt-stricken Jet Airways cancels all international flightsDebt-stricken Jet Airways cancels all international flights
The carrier was founded in the early 1990s by Naresh Goyal and went on to dominate India’s airline industry, accounting for nearly 20% of passengers carried by Indian airlines in 2018.
Yet in recent years it struggled to cut costs to compete with newer budget airlines like IndiGo. Rising oil prices and the increased volatility of India’s currency, the rupee, only made matters worse.

Swati Gupta contributed reporting.

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