Jet Airways defaults on debt payment to banks

16

Get real time updates directly on you device, subscribe now.

Jet Airways defaults on debt payment to banks

Jet Airways defaults on debt payment to banks 1

FILE PHOTO: A Jet Airways plane is parked as another moves to the runway at the Chhatrapati Shivaji International airport in Mumbai, India, February 14, 2018. REUTERS/Danish Siddiqui/File Photo

(Reuters) – Debt-laden Jet Airways Ltd has delayed the payment to a consortium of Indian banks, led by State Bank of India Ltd, the airline said late Tuesday.

The payment of interest and principal instalment was delayed “due to temporary cash flow mismatch” and the company is in talks with the consortium. The deadline for the payment was Dec. 31, 2018, Jet said in a statement.

The 25-year-old airline is facing financial difficulties and owes money to pilots, lessors and vendors. Intense pricing competition, a weak rupee and rising fuel costs weighed on Indian airlines in 2018.

Jet and its second-largest shareholder Etihad Airways are in talks with bankers on a rescue deal that may involve the Abu Dhabi-based airline increasing its stake from 24 percent.

Reporting by Tanvi Mehta in Bengaluru, Editing by Sherry Jacob-Phillips

Our Standards:The Thomson Reuters Trust Principles.

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

2019-01-04 21:43:50

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

Get real time updates directly on you device, subscribe now.

Comments
Loading...

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy