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Jet Airways Grounds Seven More Planes

Saddled with a billion dollars in debt, Jet has defaulted on loans and has not paid pilots, leasing firms and suppliers for months.

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Jet Airways Grounds Seven More Planes

Aircraft lessors have been supportive of the company's efforts to improve its liquidity, Jet said.


Jet Airways said on Wednesday it grounded seven more aircraft as the carrier failed to make payments to its lessors, taking the tally of planes hamstrung by the defaults to 13. Jet is "actively engaged" with all its aircraft lessors, the airline said, adding that its aircraft lessors have been supportive of the company's efforts to improve liquidity.

With debts of more than $1 billion, Jet has defaulted on loans and has not paid pilots, leasing firms and suppliers for months.

The loss-making airline approved a rescue deal in mid-February after months of talks to plug an Rs 8,500 crore ($1.2 billion) funding hole.

The plan, which has also been approved by Jet shareholders, includes selling a majority stake to a consortium led by State Bank of India , the airline's biggest creditor, at 1 rupee.

Reuters had previously reported that international lessors had grounded more Jet Airways planes before potentially moving them out of India, as scepticism built over whether the bailout of the carrier can clear their dues on time.

On Saturday, the airline revealed it had grounded two more aircraft in addition to the four earlier this month over default to its lessors.

Jet has a fleet of about 123 mainly Boeing planes, including 16-owned aircraft. The rest are leased from a range of lessors including GE Capital Aviation Services, US-based BBAM and Japan's SMBC Aviation Capital, sources have said.



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