Mumbai: Jet Airways has been forced to defer the scheduled deliveries of some of its Boeing 737 Max aircraft due to the payment arrears to its lessors, said two people aware of the development.
India’s second-biggest airline by market share is also close to defaulting on payments to the operators of the Mumbai airport, said another industry source.
Jet placed an order for 225 of the Boeing planes: It received five of them to date and aimed to induct six more by March. Jet financed the aircraft under an agreement called sale and leaseback as part of which an airline sells the aircraft to a lessor at a premium (in case of new planes, even prior to delivery), and then leases them back for a monthly rental.
Jet was supposed to get three planes in December under this arrangement. A person aware of the development said these have been delivered to the lessor, which will not send them to Jet until it settles payments. Jet has delayed lease payments for some of the aircraft in its current fleet of 124 planes.
The airline is going through the worst financial crisis in its 25-year existence. It has defaulted on loan repayments for December, and delayed employee salaries throughout the year.
The cash-strapped and lossmaking airline has been in talks with its partner Etihad Airways and lenders for equity infusion and loans, and is currently grappling with a complex set of clauses put forward by the Gulf carrier before the latter agreed to make fresh investments.
17/01/19 Anirban Chowdhury/Economic Times
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India’s second-biggest airline by market share is also close to defaulting on payments to the operators of the Mumbai airport, said another industry source.
Jet placed an order for 225 of the Boeing planes: It received five of them to date and aimed to induct six more by March. Jet financed the aircraft under an agreement called sale and leaseback as part of which an airline sells the aircraft to a lessor at a premium (in case of new planes, even prior to delivery), and then leases them back for a monthly rental.
Jet was supposed to get three planes in December under this arrangement. A person aware of the development said these have been delivered to the lessor, which will not send them to Jet until it settles payments. Jet has delayed lease payments for some of the aircraft in its current fleet of 124 planes.
The airline is going through the worst financial crisis in its 25-year existence. It has defaulted on loan repayments for December, and delayed employee salaries throughout the year.
The cash-strapped and lossmaking airline has been in talks with its partner Etihad Airways and lenders for equity infusion and loans, and is currently grappling with a complex set of clauses put forward by the Gulf carrier before the latter agreed to make fresh investments.
17/01/19 Anirban Chowdhury/Economic Times
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