One of the world's biggest airlines collapses
India’s Jet Airways has finally collapsed after months of speculation.
The once iconic airline has been struggling for months to stay in business and the announcement follows weeks of questions over the fate of the airline.
Jet Airways has failed to secure emergency funding from India’s banks and is suspending all flights.
The collapse of Jet Airways is the biggest in India since the failure of Kingfisher Airlines back in 2012.
The blow is massive to the Indian aviation industry, as demand soars for services. However, airlines are struggling to keep the prices low.
Jet Airways explained in a statement their sadness.
"This has been a very difficult decision but without interim funding, the airline is simply unable to conduct flight operations," Jet Airways said in statement.
"Above all, the airline would like to express its sincere gratitude to all its employees and stakeholders that have stood by the company in these trying times."
The airline was informed late on Tuesday by a range of lenders that are led by the government-run State Bank of India that the airline would not be receiving more funds.
Passengers are being informed about the closure of the airline via email and text messages and are able to claim a refund.
The airline’s operations had shrunk to 40 flights on 5 aircraft on Tuesday, before the closure was announced.
However, the banks are continuing to search for a private investor to buy 75 per cent of the airline. The deadline for bids is May 10th.