Jet Airways Shuts Down Operations Temporarily, Last Flight Will Take Off At 10:20 Pm Today
Facing a severe cash crunch and not able to secure emergency funds from lenders, Jet Airways has decided to call off its operations temporarily. It is still not sure if the company will be able to survive the crisis it is in and will start its operation again. The last fight of the company will take off today at 10:20 pm. The airline has been unable to pay its employees their due salary for the last three months. Jet Airways has joined Kingfisher on the infamous list of airlines that have ceased operations, effective from 17th April 2019.
Timeline of the turbulence
- Jet Airways participates in aggressive cost-cutting measures to meet competitors IndiGo, SpiceJet and slashes flight prices.
- Crude oil prices are on the rise.
- In the last 11 years, Jet Airways has seen profits only in two years, 2016 and 2017.
- Possible salary cut up to 25% for employees on account of rising crude prices and the falling rupee.
- Three consecutive quarters reported heavy losses for Jet Airways
- Jet Airways defaults on loan repayments.
- Rs. 76 crore loss reported in the financial year 2018.
- 14 pilots bail out on Jet Airways
- At least 36 employees have been laid off.
- Employees stop receiving salaries completely.
- Jet Airways approves bailout plan: State bank of India (SBI) led bank consortium to be the major stakeholder
- Naresh Goyal’s stake to drop from 51% to 25%, Etihad from 24% to 12%
- Jet Airways also approves to allow lenders to convert debt to equity.
- Jet Airways faces $1.2bn of net debt; operational fleet shrinks from 123 planes to just 41
March 25, 2019:
- Jet Airways’ Board approves resolution where State Bank of India would lead lenders to infuse Rs 1500 crore immediately to the save the airline.
April 2019 :
- Jet Airways operational fleet shrinks to 7. If the fleet strength goes below 5, Directorate General of Civil Aviation (DGCA) can cancel Jet Airways’ Airline operator licence.
- International flights have been cancelled till April 18th.
April 12, 2019:
- Etihad Airways, TPG capital, Indigo partners, Naresh Goyal’s Jetair with Future Trend Capital convey Expression of Interest (EoIs) in investing in the troubled airline. NIIF (National Investment and Infrastructure Fund) to bid directly.
April 14, 2019
- Pilots in association with National Aviators Guild (NAG) plan to go on a strike on April 15 until salary dues are met.
April 15, 2019:
- The Strike is deferred, and operations continue.
- Urgent Investors meeting proves crucial for the release of Interim funding of Rs.1000 crores.
- Debt total is at Rs 8,000 crore.
April 16, 2019:
- April 15th Interim funding meeting does not prove forthcoming, funding is not released.
- Board meeting of Jet Airways to discuss the possibility of shutting the airlines down.
- 20,000 employees could lose their livelihoods.
- Naresh Goyal withdraws from the bid.