Jet Airways has reportedly suspended all fights temporarily. 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 said it had no choice but to suspend the flights, but hopes to start flying again. It has $1.2bn debt and has been in talks with lenders for weeks.
In a statement the airline said it had been forced to ground all its flights because “prolonged and sustained efforts with lenders and authorities did not yield the desired results”.
The Indian government had asked state-run banks to step in with a bailout plan for the airline – which employs 23,000 people and was founded by Naresh Goyal more than 25 years ago. He stepped down as chairman last month.
Pilots, engineers, and ground staff have not been paid for months, and passengers have been left stranded around the world as a result of cancellations.
“Late last night, Jet Airways was informed by the State Bank of India (SBI), on behalf of the consortium of Indian lenders, that they are unable to consider its request for critical interim funding,” the airline said.
“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,” it added.
The UK’s Civil Aviation Authority tweeted advice to customers, outlining different approaches for seeking refunds depending on how the flight was booked.
Jet Airways had said earlier on Wednesday it was working to “minimise guest inconvenience” by using its contact centres and social media teams.
“In parallel, the airline’s management and its key stakeholders including its consortium of lenders, continue to work closely towards resolving the current situation,” a spokesman had said.
“The airline regrets the inconvenience caused to its guests,” they added.