Jet Air seeks government aid for more loans, fuel credit
15 February 2012
Jet Airways, India's largest private airline, has sought a bailout from the government in terms of facilitating working capital loans from banks and extending the fuel credit period granted by the oil marketing companies, according to a report.
Airlines are generally granted a two-month credit period by the state-run fuel retailers. Jet Air hopes to get this extended to three months as has been done for national carrier Air India, according to a Times of India report.
Jet also wants help to secure Rs1,000 crore in working capital loans, the report said citing unnamed officials.
Jet thus joins the almost bankrupt Air India and liquor baron Vijay Mallya's Kingfisher Airlines, which have gone to the government with begging bowls.
Jet Airways posted a loss of Rs101.2 crore for the third quarter of this fiscal, ending in December. In the three quarters up to December 2011, its loss touched Rs938 crore, against a net profit of Rs134 crore in the same period last fiscal.
All but one India's six main airlines are bleeding money amid rising fuel prices, excessive competition, and the general economic downturn. Their total debt pile amounts to about $20 billion.