What was once India's biggest private carrier is saddled with $1bn of debt and has been seeking a buyer.Read more
Shares in Jet Airways have plunged more than 17% after a report said bidders for the troubled Indian airline hadn't shown interest in following up on their offers.
The Economic Times, citing sources, reported that Etihad Airways, TPG Capital and Indigo Partners haven't signed non-disclosure agreements needed to conduct due diligence, as the 10 May deadline for final bids draws closer.
Jet was forced to temporarily suspend operations last month after banks rejected a plea for emergency funding.
"We are staring at an obituary," the Economic Times quoted an executive at one of Jet's key lenders as saying.
India's domestic aviation industry is one of the fastest growing in the world. But with soaring demand comes cut-throat competition, and pressure to keep costs low. Most Indian airlines, facing a turbulent time over the last few years, are making huge losses, and many airlines are struggling to stay in business. The latest example is the 25-year-old Jet Airways, which has temporarily suspended operations – and the jobs of 23,000 employees – saying it has no more money to fly its aircraft. So what's going wrong? We take a look into this lucrative but high stakes industry with a senior Jet Airways pilot and vice president of the National Aviators' Guild, a former joint secretary of India's civil aviation sector, and a young entrepreneur who is the CEO of a private jet service. Will India manage to keep its aviation industry ticking? And is it the end of the road for full-service airlines? Presenter: Devina Gupta Contributors: Captain Asim Valiani, Vice President, National Aviators' Guild; Sanat Kaul, Former Joint Secretary, Civil Aviation; Kanika Tekriwal, CEO, JetSetGo
The prominent Indian airline has run out of cash and suspended all its flights.
BBC Radio 5 Live
On Wednesday, troubled Indian airline Jet Airways temporarily suspended all its domestic and international flights after failing to find fresh funding.
The airline said its last flight would operate on Wednesday as it was not able to pay for fuel and other critical services.
“Jet Airways is £1.2bn in debt. The airline has no choice but to suspend operations as they don’t have money to pay salaries. The Indian government is trying its best to support them, but they’re coming away from this empty handed," BBC World's business news presenter Rico Hizon told BBC Radio 5 Live's Wake Up to Money programme.
Mr Hizon said that most of the airline's aeroplanes had been leased, and it didn't have the money to pay for those either.
“Just five planes have been in use, and probably those planes are the only ones they actually own, and this is one of the biggest carriers in India.”