Jet receives payment delay notice from aircraft lessors

Mumbai: Jet Airways on Wednesday said that it has received notices for payment “delays or defaults” from some aircraft lessors.

“Whilst the company is in receipt of notices for payment delays or defaults from few aircraft lessors, they are mindful of the challenges currently faced by the Indian aviation industry and they have been supportive of the company’s efforts,” the airline said in a BSE filing.

“We also wish to clarify that the company is current on its payments to Airports Authority of India (AAI) and no show-cause notice has been received by the company from AAI.”

The airline is financially suffering from an increase in Brent fuel price by more than 36 percent, along with a weak rupee and a mismatch between high fuel prices and low fares primarily undermined its financial performance during the quarter under review.

Jet Airways also plans to go in for a cost reduction programme to reduce expenses totaling Rs 2,000 crore over two years.

In addition, the company has decided for a “balance-sheet restructuring” which entails capital infusion and debt reduction.

Earlier, Jet Airways Group reported a net loss of Rs 1,326 crore for the first quarter of 2018-19 from a net profit of Rs 58 crore earned during the corresponding period of the previous fiscal.

On a standalone basis, the airline’s net loss stood at Rs 1,323 crore from a net profit of Rs 53.5 crore reported for the corresponding quarter of the previous fiscal.