Indian carrier Jet Airways has cancelled all international and domestic flights as it continues to seek rescue from its lenders.
Jet Airways met with its lenders Monday in a last-minute effort to stay in operation and was hoping to restart international services, but talks have been unsuccessful.
In a statement, Jet Airways said it has been informed by the State Bank of India that its request for “critical interim funding” has been denied.
It continued: “Since no emergency funding from the lenders or any other source is forthcoming, the airline will not be able to pay for fuel or other critical services to keep the operations going. Consequently, with immediate effect, Jet Airways is compelled to cancel all its international and domestic flights. The last flight will operate today.
“Essential services needed to support guest services and the re-commencement of the flight operations will be kept onboard until further notice”.
The airline says it “has tried every means possible to seek both interim and long-term funding”.
It is currently awaiting the result of a bidding process, which will conclude on 10 May. Local media have reported that interested parties include Indigo Partners, which owns Wizz Air, Frontier Airlines, Jetsmart and Volaris, as well as TPG Capital, Indian sovereign wealth fund National Investment and Infrastructure Fund, and Etihad Airways, which already owns a 24 per cent stake in Jet Airways.
The airline has been in financial difficulty of late, with reports saying some staff have not been paid their full salaries since December, while media say the carrier is only operating five aircraft out of its fleet of 115.
Founder and chairman Naresh Goyal stepped down last month following pressure from potential investors, leading the way for state banks to agree a cash injection, but the airline was forced to ground all international flights on 12 April.
Rumours saying Goyal was looking at submiting his own bid to buy the airline have been quashed after he announced he would not put an offer on the table.
The carrier is struggling under debts of nearly £900 million.