Jet Airways suspends all operations
April 18, 2019
In midst of a massive financial crisis, airline Jet Airways has temporarily shut down all operations of international and domestic flights after 25 years.
From being the second-largest airline in India, Jet Airways has been forced to stop all operations as it could not get emergency funding from its lenders and banks.
A tweet from Jet read
With deep sadness and a heavy heart we would like to share that, effective immediately, we will be suspending all our domestic and international flight operations.
The company owes over â'¹8,000 crore to banks and other companies such as leasing firms, oil companies and even salary to its employees which has not been paid for several months.
The employees of the company had recently appealed to PM Modi to help save their jobs and get them paid.
Jet Airways had started operations in 1993 and was founded by Naresh Goyal. The airline was operating more than 120 planes until last year on domestic and international routes.
Naresh Goyal and his wife Anita Goyal had recently resigned from the board of the airline.
Here are some factors that may have lead the airline into its current financial situations
- It is being said that the company started its downward spiral after it purchased Air Sahara for a high price of $500 million in cash in 2006.
- Other budget airlines also gave tough competition and caused losses.
- Poor management is also being considered a contributing factor.
- Another factor is the fluctuations in global crude prices.
- The airline failed to attract investors.
Many social media users shared their thoughts about the airline shutting down.
Aayush Shahâ€ @aayushs747 tweeted,Replying to @jetairways I have my memories attached with Jet Airways! I will never forget that it was the first airline I flew on, the 737-400 as a child, and that gave me a passion to study airplanes and spot them. Thank you @jetairways !!
Kailashâ€ @kailash147 ,Replying to @jetairways Flew with you for 16 of the 25 years where you were the service benchmark in the sky! Remember how proud I was when I first become a silver with you in 2004! Will fly you soon, is just a matter of time!!! #JetAirwaysCrisis ,