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This is an archive article published on April 3, 2019
Jet Airways grounds 15 more planes over non-payment of dues to lessors
Last Monday, Jet’s founder Naresh Goyal stepped down from the airline’s board as chairman enabling the lenders to extend a lifeline of Rs 1,500 crore of funding support and initiate a bidding process to rope in a new investor to run the airline.
Grounding of aircraft has disrupted operations of Jet , which cancelled a number of flights last month.
Jet Airways on Tuesday said it has grounded 15 more aircraft, due to non-payment of dues to lessors, of its total fleet of 119 planes. Till last month, the cash-strapped carrier had taken 54 planes out of operations due to lease rental defaults.
“… an additional 15 aircraft have been grounded due to non-payment of amounts outstanding to lessors under their respective lease agreements,” the Mumbai-headquartered airline said in an exchange filing. Grounding of aircraft has disrupted the operations of Jet Airways, which cancelled a number of flights last month.
On Tuesday, The Indian Express reported that the Directorate General of Civil Aviation (DGCA) has approved Jet Airways’ summer schedule only for the month of April.
Last Monday, Jet’s founder Naresh Goyal stepped down from the airline’s board as chairman enabling the lenders to extend a lifeline of Rs 1,500 crore of funding support and initiate a bidding process to rope in a new investor to run the airline.
The process is expected to be completed in the June quarter. Jet’s board had also approved, subject to and upon receipt of the relevant approvals and compliance of the applicable laws, issue of 11.4 crore equity shares of the airline to the lenders upon conversion of the outstanding debt.
Simultaneously, Goyal’s stake in the airline will come down to less than half of his current stake of 50.1 per cent. Bankers had said that the interim financing of Rs 1,500 crore will be adequate for a two-month period.
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