April 17, 2019 / 4:19 PM / 2 months ago

Timeline - Jet Airways: How the 'Joy of Flying' airline's dreams soured

(Reuters) - Beleaguered carrier Jet Airways halted all operations on Wednesday after its lenders rejected its plea for emergency funding from the airline that was once India’s largest private carrier.

The airline, known for its “The Joy of Flying” tagline, has been teetering for weeks, saddled with over $1 billion (£767.3 million) in debt.

Its lenders, led by State Bank of India (SBI), last month agreed to bail it out in a complex deal that involved the banks taking a majority stake and providing a fresh loan of $217 million, while continuing to look for a new investor. That loan never materialised, gradually crippling the 25-year old airline’s operations.

GRAPHICS: Jet Airways 2019 stock performance - tmsnrt.rs/2VMoQVJ

Here are some major developments in Jet’s story:

2018

Aug 3 – Jet denies media report it cannot fly beyond 60 days, dismisses rumours of stake sale

Aug 11 – State Bank of India (SBI) chairman says Jet’s loan is on watch list. Jet says regularly paying banks.

Aug 27 – Jet posts June-quarter loss, says will inject funds, cut costs by more than 20 billion rupees (£221 million) in two years

Sept 6 – Jet says paid salaries to 84 percent of its employees after media reports that pilots warned ‘non-cooperation’ over salary default

Nov 5 – Media report says Indian conglomerate Tata Group aims to buy 51 percent stake in airline and merge Jet with Tata’s Vistara

Dec 5 - Jet and UAE’s Etihad Airways have been holding rescue talks with Jet’s bankers, sources tell Reuters

2019

Jan 1 - Jet delays payment to a consortium of Indian banks, led by SBI

Jan 11 - Etihad not “in any position to sink new equity into Jet at this juncture”, says person familiar with Etihad’s position

Jan 17 - SBI says Jet’s lenders considering plan to resolve debt issues

Feb 8 - Airline grounds four aircraft after failing to make payments to lessors

For an interactive link on Jet's grounded planes, click tmsnrt.rs/2HTmgKl

Feb 14 - Jet’s board approves rescue deal, making its lenders its largest shareholders, to fix a near 85 billion rupee funding gap

March 19 - India’s government asks state-run banks to rescue Jet without pushing it into bankruptcy, sources say

March 25 - Founder Naresh Goyal steps down as chairman, wife Anita Goyal resigns from board. Lenders to pump in 15 billion rupees in immediate funding

March 30 - Jet CEO says airline will pay December salaries to employees

March 31 - Jet’s pilots’ union says will give carrier’s new management two weeks to clear unpaid salaries, defers plan to take strike action

April 3 - Jet forced to ground more than three-quarters of its fleet as it awaits bailout funds

April 11 - Jet grounds 10 more planes, fleet size at less than 20

April 12 - India’s aviation secretary says Jet has funds to stay afloat till April 15, TV channel reports

April 15 - Jet plans to extend suspension of international flights, does not get interim funds

April 16 - Jet will be forced to shut down as soon as Wednesday if it does not get emergency funding from its lenders, sources tell Reuters

Compiled by Chris Thomas in Bengaluru; editing by Emelia Sithole-Matarise

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