Jet Airways woes: Lessors send notices for payment defaults; Mumbai lounge access suspended from airline

Jet Airways, which has been grappling with financial woes, said it was actively engaged with its lessors and providing them with updates on efforts to improve liquidity

Press Trust of India November 01, 2018 12:32:53 IST
Jet Airways woes: Lessors send notices for payment defaults; Mumbai lounge access suspended from airline

Mumbai: Crisis-hit Jet Airways on Wednesday said it had received notices from a few aircraft lessors for payment defaults. Jet Airways also revealed access to a luxury lounge at the Mumbai Airport has been stopped for passengers from the airline, reportedly due to non-payment to a vendor.

The full-service airline, which has been grappling with financial woes, also said it was actively engaged with its lessors and providing them with updates on efforts to improve liquidity.

Shares of Jet Airways plunged 5.71 percent to close at Rs 222.30 on the BSE.

In a filing to the stock exchanges around 20 minutes before markets closed on Wednesday, Jet Airways said it was in "receipt of notices for payment delays/defaults from few aircraft lessors".

Jet Airways woes Lessors send notices for payment defaults Mumbai lounge access suspended from airline

Representational image. Reuters.

Referring to the few lessors, Jet Airways said these companies were mindful of the challenges currently faced by the Indian aviation industry and that they had been supportive of its efforts.

Further, Jet Airways clarified that it was "current on its payments to the Airports Authority of India (AAI) and no show-cause notice has been received by the company from the AAI".

Faced with a financial crunch, the airline had also delayed payment of salaries to its staff, including pilots. Meanwhile, Jet Airways said the GVK Lounge at Terminal 2 of the Mumbai airport was temporarily unavailable.

"Access to the GVK Lounge at the Chhatrapati Shivaji Maharaj International Airport, Mumbai Terminal 2 is temporarily unavailable.... the airline sincerely regrets the inconvenience to its loyal guests and seeks their understanding in the interim, even as it works to reinstate the complimentary access soon," a Jet Airways spokesperson said.

An industry source said that Jet Airways owed Rs 15-16 crore to Travel Food Service (TFS) and because of non-payment, the services have been discontinued for the airline's customers. Last week also, services were discontinued for a day but were later resumed after Jet Airways paid "some amount".

Sources said Jet Airways also held a meeting with its pilots in the national capital on Wednesday.

Details about the meeting could not be ascertained immediately.

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