Monday, March 04, 2019

Blues to fade by March 18, says Jet Airways as 23 planes grounded

With every passing day, Jet Airways is grounding more planes over non-payment of lease rentals. Late on Friday, the debt-laden airline informed that it has grounded two more of its aircraft due to non-payment of amounts outstanding to lessors under their respective lease agreements.

With the latest grounding, the total number of planes Jet has grounded in recent times stands to 23, which is almost 20 per cent of its entire fleet of about 123 planes. If reports are to be believed, Jet may ground one-third of its fleet size in the coming days.

The airline, which is reeling under a debt of over $1 billion, said that it is actively “engaged” with all its aircraft lessors, and regularly provides them with updates on the efforts undertaken to improve its liquidity. The company said it was making all efforts to minimise disruption to its network due to the grounding of these planes and was pro-actively informing and re-accommodating its affected guests. It also continues to provide the required and periodic updates to the Directorate General of Civil Aviation (DGCA), it said.
Earlier this week, Jet’s promoter Naresh Goyal told his employees that he is willing to make any “sacrifice” for them and to revive the carrier.
Goyal also assured them that the management, led by CEO Vinay Dube, will give them an update on its resolution plan by March 18, by which time the situation will be gently easing up in the airline’s favour. “While a few steps remain, some critical steps are behind us and the remaining approval processes are well underway,” Goyal said in the letter, which came a day after reports emerged that he has agreed to step down from the chairmanship of Jet Airways, in which lenders, led by State Bank of India, have become the largest shareholders.
04/03/19 New Indian Express
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