Jet Airways says few aircraft lessors have sent notices for payment defaults

Crisis-hit Jet Airways Wednesday said it has received notices from few aircraft lessors for payment defaults. The full service airline, which is grappling with financial woes, also said it is actively engaged with its lessors and providing them with updates on efforts to improve liquidity.

Shares of the Jet Airways plunged 5.71 per cent to close at Rs 222.30 on the BSE. Image Source: Reuters

Crisis-hit Jet Airways Wednesday said it has received notices from few aircraft lessors for payment defaults. The full service airline, which is grappling with financial woes, also said it is actively engaged with its lessors and providing them with updates on efforts to improve liquidity.

Shares of the company plunged 5.71 per cent to close at Rs 222.30 on the BSE. In a filing to the stock exchanges around 20 minutes before markets closed, the carrier said it is in "receipt of notices for payment delays/ defaults from few aircraft lessors".

Referring to the few lessors, the airline said they are mindful of the challenges currently faced by the Indian aviation industry and that they have been supportive of its efforts. Further, Jet Airways clarified that it is "current on its payments to the Airports Authority of India (AAI) and no show cause notice has been received by the company from the AAI".

Faced with financial crunch, the airline has also delayed payment of salaries to its staff, including pilots. Meanwhile, the airline said the GVK Lounge at Terminal 2 of Mumbai airport is temporarily unavailable. "Access to the GVK Lounge at the Chhatrapati Shivaji Maharaj International Airport, Mumbai Terminal 2 is temporarily unavailable.

"... The airline sincerely regrets the inconvenience to its loyal guests and seeks their understanding in the interim, even as it works to reinstate the complimentary access soon," an airline spokesperson said.

An industry source said that Jet Airways owns Rs 15-16 crore to Travel Food Service (TFS) and because of non payment, the services have been discontinued for the airline's customers. Last week also, services were discontinued for a day but were later resumed after company paid "some amount".

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Sources said Jet Airways also held a meeting with pilots in the national capital on Wednesday. Details about the meeting could not be ascertained immediately.

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