Jet Airways’ four aircraft grounded on payment failure

Jet Airways four aircraft grounded

Jet Airways, a heavily indebted carrier has grounded its four aircraft on being failure to pay lessors under lease agreement. The company has a fleet of mainly Boeing Co 737 jets and having debts from over 20 lessors.
In its statement to National Stock Exchange (NSE) the Company said,” It is engaged with all its aircraft lessors and regularly updating them on efforts undertaken by the Company to improve its liquidity. The Company is making all efforts to minimize disruption to its network due to the nonpayment and is proactively informing and re-accommodating its affected guests.”

The company has been severely hit by price competition, oil costs as well as rupee depreciation and having a debt of over $1 billion from banks, vendors and lessors.
As per past announcements and Indian registration documents, the main lessors to Jet Airways include SBMC Aviation Capital, Avolon, Jackson Square, BOC Aviation Ltd, Aircastle Ltd, DAE Aerospace, AerCap Holdings NV, and GE Capital Aviation Services.

Last month Reuters exclusively reported that after a meeting with the company the lessors were considering taking back planes and the situation has since worsened, the person told Reuters on Thursday.
The person said, “Patience is running out and some lessors are not convinced about a viable rescue plan for the company. He added declining to be identified due to the sensitivity of the matter and no one wants to be the last one pulling out their aircraft.”

Last week the company said, “On 21st February meeting, It would seek shareholder approval to convert existing debt into equity to resolve its financial issues and offer lenders to nominate directors in its board.

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