Jet aircraft grounded, cancels several flights: reports
30 January 2019
Jet Airways, which is embroiled in a financial crisis, cancelled more than a dozen flights on Wednesday after the grounding of six Boeing 737 aircraft because of non-payment of lease rentals.
While the airline has not confirmed the reports about the cancelled flights, airport sources have said flights have been cancelled on Tuesday and Wednesday by the airline following the grounding of its aircraft.
The airline has not been able to pay its lease rentals resulting in the lenders cracking down on its operations.
Jet Airways is negotiating with its partner Etihad for the infusion of additional funds. The airline is also seeking shareholders’ approval for converting loans into shares of other securities. It has called for a meeting of shareholders on February 21.
There were reports on Wednesday of State Bank of India, a major lender, considering the possibility of acquiring a 15-per cent stake in the airline if the debt-for-equity swap is cleared.
Lenders, who would be able to nominate directors on the board, could also end up controlling a 30-per cent stake in the airline. Etihad Airways could also raise its stake to 40 per cent from 24 per cent. The airline has debts touching $1.15 billion.