Various India media reported on Friday that Jet Airways had cancelled all worldwide flights, which include services to Europe and Asia.
Jet Airways had also said its Mumbai-Kolkata, Kolkata-Guwahati and Dehradun-Guwahati-Kolkata flights stood cancelled till further notice due to "operational reasons".
Jet Airways was founded in 1993 as India's first significant privately owned airline, competing with the poorly run state-owned Indian Airlines.
Jet Airways has promised refunds within 10 days however it is unclear if this is guaranteed as even the carrier's staff have not been paid, said The Independent.
The government rules stipulate an airline must have at least 20 planes for operating worldwide operations.
And according to the official website for London's Heathrow airport, Jet Airways' Friday flights to Mumbai and Delhi will not operate.
Yesterday Business Traveller reported that the airline had suspended flights to Singapore, and local media reports suggest this has been followed by the suspension of all global services, including London.
Jet Airways has suspended its global flights, stoking fresh fears about the future of India's largest private airline.
Earlier on Friday, Union Civil Aviation Minister Suresh Prabhu ordered a review into matters related to Jet Airways.
Jet Airways is now operating only 11 out of the 123 planes it had in operation before the financial crisis struck about six months ago. A regulatory filing says Goyal has pledged 26 per cent stake in the ailing airline as security for loans from Punjab National Bank. It extended the deadline on Wednesday for interested bidders to submit a response until Friday.
"I had a flight to New Delhi this evening, but when I reached the airport I was informed that the flight was cancelled".
According to civil aviation secretary Pradeep Singh Kharola, the government will review Jet's eligibility for global operations. The airline had also taken Board approval to convert 11.4 lakh shares at Re 1, and then infuse Rs 1,500 crore funding.
SBI Caps has the mandate for Jet Airways' sale on behalf of the SBI-led consortium of the domestic lenders to the debt-ridden private carrier.
ET Now has reported that Naresh Goyal, the founder and ex-Chairman of the airline, is likely to submit an EoI.
Mismanagement has also plagued the airline with analysts tracing the start of Jet´s financial problems to its 2006 purchase of Air Sahara for $500 million in cash.