Beleaguered carrier Jet Airways halted all operations after its plea for emergency funding from its lenders was rejected leaving several employees jobless. The airline, known for its “The Joy of Flying” tagline, has shut down its operations as it is under a heavy debt of 1 billion USD. (All pictures/AFP)
Updated On: 2019-04-25 07:32 AM IST
In 26 years of existence, it survived a number of rough patches but managed to come out of the troubled water, but troubled by debt and with no cash to continue operations, the airline decided to temporarily suspend all flights from the night of April 17, 2019. Jet Airways operated domestic as well as international flights and the airline was one of the largest carrier by passenger market share in the country for a few years. We look back at how it all started for the Mumbai-based airline company
After the monopoly to the State-owned carriers to operate as scheduled airlines ended, Jet Airways started full-fledged operations. Naresh Goyal with three other Indian industrialists, SK Modi, Subrata Roy, and Thakiyudeen Wahid, took the advantage of the opening of the Indian economy and the enunciation of the Open Skies Policy and launched Jet Airways (Private Limited) airlines in 1993. Besides Jet Airways, there were other private airlines like East-West Airlines, ModiLuft, and Sahara Airlines. Air India, Indian Airlines and Vayudoot operated as public sector airlines
In 2004, Jet Airways became a public company and after getting the nod from the Ministry of Civil Aviation, Jet Airways started its global operations. The airline flew its first international, long-haul flight to London in May 2005
Jet Airways bought Air Sahara for about 340 USD million in 2007 and the combined entity becomes the largest airline operator in India with an over 30 per cent market share taking Goyal on the Forbes list of Richest Men. Naresh Goyal rebranded Air Sahara as Jet Lite, which was a low-cost brand to take on flights like SpiceJet, Air Deccan and IndiGo
In 2013, when the government opened the gates for foreign airlines to invest in Indian carriers, Goyal was first to get Etihad Airways onboard to invest about 380 USD million in Jet Airways which aided by relaxed FDI rules, picked up stakes in Jet
By August 2018, Jet Airways was in a serious financial mess. A combination of internal and external factors saw the airline default on the payment of salaries to its staff
In January 2019, bankers stepped in to rescue the airlines to infuse more capital into the company. Also, potential buyers like the Tata Sons along with other bankers had left the negotiating side. Etihad Airways, the foreigner investor wanted Goyal and his wife to step down from the company board
As per the Directorate General of Civil Aviation (DGCA) data for February 2019, at a market share of 10 per cent, Jet Airways had dropped to the fourth place, behind IndiGo (43.4%), SpiceJet (13.7%) and Air India (domestic, 12.8%). On March 25, 2019, Naresh Goyal announced that he and his wife Anita have stepped down from the board for the banks to take control to save the airline. His stake in the airline fell from 51 per cent to 25 per cent
On March 31, 2019, the airline pilots' union announced it will the new management two weeks to clear unpaid salaries or they will take strike action
Jet Airways was forced to ground more than three-quarters of its fleet on April 3, 2019, as it awaits bailout funds. The Ministry of Civil Aviation formed a committee comprising airport operators, Airport Authority of India and DGCA to temporarily re-allocate Jet's slots. The development comes after Civil Aviation Secretary convened two separate meetings, one with airport operators and the other with the airlines to coordinate and address issues on capacity, slots and passenger convenience
Jet Airways grounded more 10 more, fleet size at less than 20 on April 11, 2019
Jet Airways planned to extend the suspension of international flights till it does not get interim funds April 15, 2019
Jet Airways will be forced to shut down if it does not get emergency funding from its lenders
(Representational image)
In pic: Around 100 staff members of the ailing Jet Airways Monday staged a demonstration here, urging the government to intervene and bail out the airline. Faced with delay in payments of salaries and prospect of joblessness, hundreds of airline employees had gathered to voice their concerns and appeal to the government to intervene for the revival of the company
Jet Airways had on April 17, 2019, announced a temporary suspension of operations after it failed to receive emergency funds from lenders, leaving about 23,000 employees to face a bleak future
On April 20, 2019, the employees had written to President Ram Nath Kovind and Prime Minister Narendra Modi, seeking their intervention to recover outstanding dues as well as to expedite the process of emergency funds for the airline. In spite of cost-heavy structure, the national carrier has been in the business for decades, while casualties in the private sector mount. While Air India has continued to remain in the business, major private carriers -- Air Deccan, Kingfisher, Air Sahara (acquired by Jet Airways and rechristened JetLite) and Jet Airways -- have gone with the wind.
