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Four Jet Airways aircraft grounded for non-payment of lessors’ dues

Four Jet Airways aircraft grounded for non-payment of lessors’ dues

New Delhi/Mumbai: Financially troubled Jet Airways on Thursday said that four of its aircraft have been grounded for non-payment of dues to lessors.

According to a regulatory filing to the BSE, the airline said that it is actively engaged with all its aircraft lessors and “regularly provides them with updates on efforts undertaken by the company to improve its liquidity”.

“The company is making all efforts to minimize disruption to its network…and is proactively informing and re-accommodating its affected guests,” it said in the filing.

“The company also continues to provide required and periodic updates to the Directorate General of Civil Aviation in this regard.”

The airline also said that three aircraft that were grounded for engine normalization are back in commercial operations.

Lately, Jet Airways has been in a tight spot financially as a rescue plan is being stitched between its partner Etihad and a consortium of banks.

The airline has a loan burden of over Rs 8,000 crore and it could see some of that amount being converted into equity by the banks.

Last month in a filing, Jet Airways said an Extraordinary General Meeting (EGM) of the company would be held on February 21 where a special resolution would be put forth to consider and “approve the conversion of loan into shares or convertible instruments or other securities”.

The question about the financial health of Jet Airways was also raised in the Lok Sabha.

Replying to a question on the airline, Minister of State for Civil Aviation Jayant Sinha in a written reply informed the Parliament that efficient operations and financial performance are the responsibility of each airline and their shareholders.

“As informed by Jet Airways, it is in the process of resolving its financial problems through negotiations with banks, financial institutions, lessors, etc,” the Minister said.

“Each airline prepares its own business plan on the basis of its own market assessment and financial resources. Based on its business plan, efficient operations and financial performance is the responsibility of each individual airline and its shareholders.”

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