Lessor dues: After 19 planes in February, Jet Airways grounds six more in March so far
Saurabh Sinha | TNN | Mar 4, 2019, 19:47 ISTHighlights
- Jet has so far been telling aviation authorities it is making alternate arrangements for passengers booked on its cancelled flights
- The airline currently owes money to most stakeholders, including salary to employees
- Pilots are yet to be paid salary for the month of December, January and February
(File photo)NEW DELHI: In what has become an almost daily feature, Jet Airways on Monday informed BSE that it has grounded two more planes “due to non-payment to lessors”. On March 1 and 2, they had told BSE about grounding two planes each on both days. While six planes have been grounded this month so far, February saw 19 aircraft being grounded due to non-payment to lessors.
Jet Airways website shows the airline has 119 aircraft. In all, over 30 aircraft have been grounded due to lessor payment issues. Some others are grounded for want of repairs, spares and engines. The airline is not sharing the number of planes and daily flights it is actually operating these days.
“A handful of those planes have been repossessed by lessors. Rest are all still parked at airports across the country as there is a feeling the airline may get fund infusion after which lessors will be paid and the planes will fly again,” said a senior official monitoring the situation.
The grounding of so many aircraft is leading to flight cancellations. Jet has so far been telling aviation authorities it is making alternate arrangements for passengers booked on its cancelled flights. Air India and Vistara, the other two Indian full service carriers, are not accepting passengers of Jet’s cancelled flights. The airline currently owes money to most stakeholders, including salary to employees. Pilots, for example, are yet to be paid salary for the month December, January and February.
For the past few months there has been talk of Etihad, which has 24% stake in Jet, putting in more funds along with lenders led by SBI doing debt restructuring and also pumping in funds. Last week Jet chairman Naresh Goyal told employees that things may “gently ease” by March 18. “I solemnly assure you to keep you updated when our CEO, Vinay Dube and his team will ensure a fresh detailed update to be provided to you by the 18th of this month, by which time I am confident of the situation gently easing up in our favour,” he had written.
Employees are hoping that his words turn out to be true.
Jet Airways website shows the airline has 119 aircraft. In all, over 30 aircraft have been grounded due to lessor payment issues. Some others are grounded for want of repairs, spares and engines. The airline is not sharing the number of planes and daily flights it is actually operating these days.
“A handful of those planes have been repossessed by lessors. Rest are all still parked at airports across the country as there is a feeling the airline may get fund infusion after which lessors will be paid and the planes will fly again,” said a senior official monitoring the situation.
The grounding of so many aircraft is leading to flight cancellations. Jet has so far been telling aviation authorities it is making alternate arrangements for passengers booked on its cancelled flights. Air India and Vistara, the other two Indian full service carriers, are not accepting passengers of Jet’s cancelled flights. The airline currently owes money to most stakeholders, including salary to employees. Pilots, for example, are yet to be paid salary for the month December, January and February.
For the past few months there has been talk of Etihad, which has 24% stake in Jet, putting in more funds along with lenders led by SBI doing debt restructuring and also pumping in funds. Last week Jet chairman Naresh Goyal told employees that things may “gently ease” by March 18. “I solemnly assure you to keep you updated when our CEO, Vinay Dube and his team will ensure a fresh detailed update to be provided to you by the 18th of this month, by which time I am confident of the situation gently easing up in our favour,” he had written.
Employees are hoping that his words turn out to be true.
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