Mumbai: Jet Airways (India) Ltd has defaulted on lease rentals of its Boeing 737s, highlighting the financial difficulties faced by the airline. Airfinance Journal, a publication dedicated to airline finance, has reported that Jet has been served a notice by International Lease Finance Corp (ILFC), the world's largest aircraft lessor by value.
Jet and its subsidiary JetLite have a fleet of 115 aircraft, which include a mix of narrow-body and wide-body planes. About 75-80 of its planes are on operating lease and in the last two-three years, the airline has been carrying out a sale-lease back of its plane to reduce debt.
According to sources, the notice pertains to four-five Boeing 737s, which have been inducted into the fleet over the last five-six years. The default amount could not be immediately confirmed. "The airline has been under pressure from lessors, but the default is serious. Other lessors, too, might start putting pressure," a source said.
A Jet spokesperson said Jet had a long and excellent relationship of leasing aircraft from ILFC. "Jet and ILFC are in discussions to reconcile their respective accounts to identify the exact dues. On completion of the same the accounts will be settled between Jet and ILFC."
27/09/13 Aneesh Phadnis/Business Standard
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Jet and its subsidiary JetLite have a fleet of 115 aircraft, which include a mix of narrow-body and wide-body planes. About 75-80 of its planes are on operating lease and in the last two-three years, the airline has been carrying out a sale-lease back of its plane to reduce debt.
According to sources, the notice pertains to four-five Boeing 737s, which have been inducted into the fleet over the last five-six years. The default amount could not be immediately confirmed. "The airline has been under pressure from lessors, but the default is serious. Other lessors, too, might start putting pressure," a source said.
A Jet spokesperson said Jet had a long and excellent relationship of leasing aircraft from ILFC. "Jet and ILFC are in discussions to reconcile their respective accounts to identify the exact dues. On completion of the same the accounts will be settled between Jet and ILFC."
27/09/13 Aneesh Phadnis/Business Standard
