The day Jet Airways shut down: Blow by blow account of the dramatic day that shook corporate India

Embattled liquor tycoon Vijay Mallya on Wednesday took to social media once again, this time to express his solidarity with Jet Airways founder Naresh Goyal. Mallya claims private airlines were discriminated against by the Indian government, which bailed out state-owned Air India but did not assist his own Kingfisher Airlines and now Jet Airways. Image source: Reuters

With the lenders rejecting an lifeline of Rs 400 crore Wednesday Jet Airways, which has been on a wing and prayer since January, is left with no other option but to ground operations at least temporarily. Image source: Reuters

My father has been associated with Jet Airways for over 20 years and loss of his job will mean compromising with our every dream and aspirations, a teenage daughter wrote in an online petition. As more than 16,000 employees, many of them with huge unpaid salary dues, stare at an uncertain future, the once-mighty carrier's chief Vinay Dube said it does not have an answer to "what happens to us employees during the sale process". Sanjana Singh said her father losing his job would make it quite difficult to even pursue her education. "I am daughter of one of the Jet Airways employees. My father has been associated with Jet Airways for more than 20 years. But at this stage, loss of his job will be a huge setback for our family. We would need to compromise with our every dream and aspirations," she said. Image source: Reuters

Teetering for over four months due to cash-drought, Jet Airways, flying for over 25 years, Wednesday said its last flight will takeoff later this night, after its lenders refused to offer a Rs 400-crore lifeline. "With immediate effect, we are compelled to cancel all our international and domestic flights. The last flight will operate today," Jet Airways informed the exchanges. The airline said the decision follows the lenders refusing to offer a lifeline. Image source: Reuters

Hours after cash-starved Jet Airways announced the suspension of operations, the Ministry of Civil Aviation (MoCA) said Wednesday it will support the resolution process within the existing regulatory framework. In its first reaction on the latest Jet Airways development, the ministry also said that the DGCA and other regulators are monitoring the situation carefully to ensure that all existing rules regarding refunds, cancellations, and alternate bookings are followed strictly. In a series of tweets, the ministry said the airline has informed it about temporarily ceasing operations. "The bank-led resolution process is still underway and expected to end by May 10. During this time, MoCA (Ministry of Civil Aviation) will support the resolution process within the existing legal and regulatory framework," it said. Image source: Reuters

Hinting at job losses going forward, grounded carrier Jet Airways chief executive Vinay Dube Wednesday said the airline does not have an "answer" at present on the fate of its 20,000-odd employees during the stake sale process. Image source: Twitter/Jet Airways

The temporary closure of Jet Airways is a setback for Indian aviation and a sad day for all those in the business of flying, Air India CMD Ashwani Lohani said Wednesday. "While sustained mismanagement definitely contributed, the fact remains that in the entire aviation eco-system, it is the airline that invariably remains at the receiving end while all other stakeholders make money," Lohani said in a Facebook post. According to him, it is a sad day for all those in the business of flying in the country to witness a fine airline closing shop. "We have in the past witnessed many airlines shutting shop and it is time to appreciate that the razor thin margins which airlines are forced to operate with in a competitive environment, results in a scenario that encourages unsustainability," he noted. Image source: Reuters