Cash-starved Jet Airways cancelled all worldwide flights for Thursday night and Friday morning even as it operated just 14 aircraft during the day - the smallest fleet among scheduled domestic carriers.
Former Jet Airways chairman Naresh Goyal is also expected to submit initial bids for a stake in the airline, sources said.
Jet Airways" Boeing 777-300ER "VT-JEW' is now grounded at Amsterdam Airport.
It owes various lenders 8,000 crore rupees (S$1.6 billion).
The drastic measure was announced after the airline informed the exchanges that it was forced to ground 10 more planes due to non-payment of rentals to the lessors. But even before government could review Jet's eligibility to go overseas, cash crunch will make Jet India's smallest schedule airline flying only domestic routes till Friday morning. The airline cited operational issues as the reason for the cancellations. "And effective today, there are no Jet flights to and from Kolkata, Patna, Guwahati and other airports in the region", said the travel industry source.
As the deadline for bids to purchase a stake in Jet Airways has been extended till April 12th, the airline's creditors have reportedly received a bid Etihad, which is the struggling carrier's UAE-based partner.More news: Uganda must capture kidnappers of freed US tourist
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All Jet Airways' worldwide flights scheduled to depart on Friday from Delhi - to Singapore, London, Amsterdam and two to Kathmandu - are cancelled, the airport website says.
In a separate statement, Jet said a flight from Mumbai to Kolkata, from Kolkata to Guwahati and from Dehradun to Kolkata via Guwahati have been cancelled.
The government rules stipulate an airline must have at least 20 planes for operating worldwide operations. Civil Aviation Secretary Pradeep Singh Kharola said last week that only 26 aircraft are operational while Jet Airways last month said it is now flying 35 planes.
Of the 14 aircraft that it is operating as of Thursday, eight are wide-body B777s (seven) and an A330- generally used for long-haul global operations. "While the increased air fares are likely to support the profitability of the airlines in an environment of high costs, the impact on the passenger growth does not bode well for the industry", ICRA said. You can check here if your flight on April 12 or 13 has been cancelled.
The cash-strapped airline is chasing fresh investors to keep flying.