Tuesday, August 21, 2018

India's Jet Airways gets reprieve from creditors, partners

Jet Airways has agreed with its commercial partners on terms intended to reduce the liquidity crunch the airline is currently facing, the Business Standard has reported.

According to the newspaper's sources, Boeing agreed to temporarily release and return a portion of the pre-delivery deposits paid towards the 125 B737-8s ordered by the Indian carrier. Jet Airways will have to repay the money to the manufacturer before taking delivery of the aircraft.

It is unclear how much money the carrier has received from Boeing. The manufacturer offered a similar reprieve to fellow Indian airline SpiceJet (SG, Delhi Int'l) when it was facing a cash crunch in 2014.

Jet Airways is also reportedly negotiating terms with lessors, seeking to lower the cost of the financing of its fleet. According to the newspaper's sources, the airline so far approached SMBC Aviation Capital and GECAS.

The carrier is further seeking to alter the terms of its existing debt facilities with foreign lenders. Jet Airways approached its creditors seeking a waiver of a loan covenant which would free up to USD185 million in fresh capital.
21/08/18 ch-aviation