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Journalism of Courage
Top Indian carrier Naresh Goyal-led Jet Airways has sought government help to secure additional working capital loans from banks and an extended credit period from state-run oil marketing companies,it was reported on Wednesday.
The airline,which has a two-month credit period with oil companies,hopes to get this extended to three months,the report quoted an unnamed company official as saying.
Jet also wants help to secure 10 billion rupees ($202.57 million) in working capital loans,the official added.
A company spokesperson could not be immediately reached for comment.
In January,Jet posted its fourth straight quarterly loss,as it struggled with high fuel costs and low fares.
India’s airline companies face a severe cash-crunch and have a massive debt pile of about $20 billion. Jet itself has a debt of about 140 billion rupees ($2.84 billion),the report said.
All but one of India’s six main airlines are loss-making,with state-run Air India on government life-support.
Jet is yet to pay January salaries to employees,the report said.
In a move to help the embattled sector,the federal government recently allowed India’s airlines to import jet fuel directly.
($1 = 49.3650 Indian rupees)
