With three more planes grounded, 40% of Jet’s fleet is not operating

Our Bureau New Delhi | Updated on March 07, 2019 Published on March 07, 2019

Jet Airways is currently operating just 70 of the 119 aircraft in its fleet, a senior government official said on Thursday. This means at least 40 per cent of its fleet is not operating.

In a BSE filing on Thursday, Jet Airways said it has grounded three more aircraft as it failed to make payments to its lessors. The airline had informed the BSE on March 1, 2 and 4 that it had grounded six aircraft each on those days for similar reasons.

The government official added that the airline has been asked to ensure that its passengers are not inconvenienced, and that the aircraft that operational are safe and air worthy.

No ban has been placed on the airline from accepting passenger bookings beyond a limited period of time as such a move will create panic in the market, the official said. A few years ago, when SpiceJet ran into financial troubles and began to cancel scheduled flights, the government had stepped in and stipulated that the airline could not accept passenger bookings which were more than 15 days away. The government order was then withdrawn within days.

Jet has been facing a liquidity crisis, with salary delays, cut back on flights, and the return of aircraft to various leasing companies.

On February 14, its board approved a Bank-Led Provisional Resolution Plan. It proposes a restructuring to meet a funding gap of nearly ₹8500 crore through a mix of equity infusion, debt restructuring, sale, sale and lease back, and refinancing of aircraft.


Published on March 07, 2019
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