Jet Airways will suspend operations to and from Abu Dhabi, Etihad's base, from Monday.
While this could be a way of showing non-cooperation with Etihad, which has not been able to make its mind regarding fund infusion in the Mumbai-based Jet Airways, the airline has said that the decision was taken due to "operational reasons".
There is no word as to when the suspension will be revoked.
Etihad holds 24 percent stake in Jet Airways and is widely expected to be a major helping hand for the beleaguered airline. The airline had asked for interim funding support of Rs 750 crore from Etihad to continue operations. However, the board meeting of Etihad on the matter was inconclusive.
“It must be reiterated that non-receipt of interim funding will be severely delirious to the future of the airline, leading to its grounding, which is something all of us, including the banks and other stakeholders, have worked assiduously to avoid over the last few months,” Goyal had written to Douglas in a letter dated March 8.
Goyal had also said that the airline has over 50 planes on the ground and increasing arrears of vendors and salaries to employees make the need for interim funding all the more imperative.
The situation at the airline has been worsening every day with the latest blow being a letter shot off by the pilot union National Aviators Guild to the Labour ministry and DGCA.
In the letter, the pilots told the government and DGCA that all pleas to the management regarding delayed salaries have fallen on "deaf ears".
This comes after Naresh Goyal, in his letter to employees two weeks ago, had assured that the situation would improve by March 18.
"Confident that the situation will ease up in our favour by March 18. CEO Vinay Dube and team will give a detailed update by March 18," Naresh Goyal had said in that letter.