Jet Airways might fly for the last time tonight and that's bad news for travellers
Jet Airwaysmight take its last flightat 10:30 PM tonight, according to media reports.
- None of the struggling airline’s creditors want to step in and save the airline.
- This will hurt travellers who already tickets booked for the near future and the reduced number of flights will push fares up.
What’s more, the government has reportedly decided not to step in to rescue the airline.
If it comes to pass, tonight will mark a sad end for the 25-year old airline. It has only five functional planes - after starting the year with 119 - and $1.2 billion in debt.
Flight prices had already started to spike amid reduced capacity and competition. As a result of Jet’s operational woes, the Directorate General of Civil Aviation (DGCA) has asked domestic airlines to keep flight prices in check.
The lack of funding has translated in a grounding of flights, the non-payment of salaries to airline staff and repossession of planes by vendors. As a result of flight
Yesterday, the airline asked for emergency funding of ₹4 billion - a last ditch to keep its operations going until the bidding process for a majority stake in the airline concluded.
Earlier this week, Jet’s creditors, led by the
Their decision against providing Jet with emergency funding indicates one thing: they don’t think it makes financial sense to keep Jet running in its current state. The cash burn just isn’t sustainable.
While the airline’s creditors and promoters assess bids and devise a future strategy for the airline, consumers will be the ones to take a hit.
Jet needs emergency funding of ₹4 billion to stay airborne until a buyer swoops in