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Jet Airways, once India's largest airline by market cap, has been forced to immediately halt operations after Indian banks refused to furnish emergency funds, leading to a liquidity crisis that looks to have bankrupted the airline.
The Indian carrier said in a statement Wednesday that it would suspend all flights, capping weeks of speculation over the airlines fate. The news sent its shares plunging 34% in Mumbai on Thursday as bankruptcy appeared unavoidable.
Statement - Jet - Airways - Consortium - Lenders
In its statement, Jet Airways said it was informed by a consortium of government-run lenders on Tuesday that the airline's request for emergency funds had been refused. The decision could create problems for Prime Minister Nahrendra Modi, who is in the middle of the 'largest election in history' as 900 million Indians take to the polls to decide whether a coalition led by his Bharatiya Janata party will remain in power (though early results suggest that it will, and if Modi truly felt vulnerable, he could always stir up some more trouble with Pakistan to shore up support). Modi's opponents have latched on to his failure to create jobs and bolster India's economy. If Jet does shut down, it would put 20,000 jobs at risk.
"Above all, the airline would like to express its sincere gratitude to all its employees and stakeholders that have stood by the company in these trying times," it said in its statement.
Point - Way - Airline
At this point, the only way the airline could...
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