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The Indian airline Jet Airways will be temporarily closed Wednesday, the company said, confirming the information previously provided by Reuters.
The second largest airline in India has a debt of about $ 1.2 billion and has been working for weeks to obtain another loan in order to continue operations. Reuters reported that these discussions had failed when state-owned banks rejected Jet's request for $ 58 million.
"The bankers did not want to take a piecemeal approach that would require the carrier to remain in flight for a few days and would again risk returning Jet for additional funding," said a bank source in the transfer service.
In a statement, Jet Airways confirmed that all air operations are totally suspended and its funding is exhausted.
"As no emergency funding from lenders or any other source is expected, the airline will not be able to pay for fuel or other services essential to continue its activities ", he said in a press release. "Therefore, with immediate effect, Jet Airways is obliged to cancel all its international and domestic flights.The last flight will be made today."
Jet operates national and international services from India, including to London, Brussels, Amsterdam and Shanghai. According to Indian government statistics, Jet had a market share of around 13.8 percent in 2018, which ranked it second in terms of traffic to Indigo.
Jet Airways shares on the Indian stock market lost about 8% in trading on Wednesday.
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