Jet Airways suspends all operations as lenders reject plea for funds

The grounding comes after weeks of painstaking negotiations between the airline and its lenders for funds following a severe cash crunch that had led to defaults and mounting dues

Jet Airways, started more than 25 years ago by Naresh Goyal, has suspended operations after lenders turned down the airline’s demand for emergency funding. Lenders’ consortium, led by State Bank of India, indicated the effort to select a new investor would continue even as Jet was “temporarily” grounded on Wednesday.

Bid documents to select new investors were issued on Wednesday and the lenders propose to conclude the process by May 10. Four parties including private equity firms TPG Capital and Indigo Partners, besides sovereign fund NIIF and Jet's strategic partner Etihad Airways, are in the fray to acquire ownership of the