Bad investments, competition from several low-priced carriers, high oil prices and a weak rupee have led to Jet's current financial predicament, analysts say.
Union Aviation Minister Suresh Prabhu has called for a review of issues related to the crisis-hit airline.
Its lenders, led by State Bank of India (SBI), have been seeking expressions of interest for an up to 75 percent stake in the airline.
Accordingly, the last flight will leave the Amritsar airport at 2230 hrs for New Delhi as per its flight schedule.
"Since no emergency funding from the lenders or any other source is forthcoming, the airline will not be able to pay for fuel or other critical services to keep the operations going. and has chose to go ahead with temporary suspension of operations", the airline said.
The airline has also informed the DGCA, and the ministries of civil aviation and finance, and other relevant government institutions of this course of action.
The airline CEO has reportedly informed State Bank of India, the main loaner of the carrier, that unless it received an immediate financial boost, Jet Airways would be forced to close its flight operations, as soon as April 17, 2019, according to India Today.
Referring to his offer to repay 100 per cent of his loans to Indian banks and government, Mallya said, "I invested hugely into Kingfisher which rapidly grew to become India's largest and most awarded airline".
"Jet Airways is compelled to cancel all its worldwide and domestic flights".
Dube, in a letter to employees late on Tuesday that was seen by Reuters, said Jet has stressed to its lenders the need for urgent funding, critical to the continuation of its operations. India's ailing Jet Airways has drastically reduced operations amid talks with investors to purchase a controlling stake in the airline and help it reduce its mounting debt. Going ahead, Jet Airways said it would now await the bid finalisation process by SBI and the consortium of Indian lenders.
It was not immediately clear who else might bid for the company. Not all banks are ready to part with any more money for a carrier that owes them more than Rs 8,000 crore.
"We are ready to go home", a Jet Airways employee told Moneycontrol.
Earlier on Monday, Jet Airways' pilots appealed to the SBI to release Rs 1,500 crore for the airline.