Trouble for Jet Airways continues, four aircraft grounded
Jet Airways’ flight for survival seems to be stuck in cloudy skies and in a recent update the company informed the bourses that four of its aircraft have been grounded due to non-payment of amounts outstanding to lessors under lease agreements.
Additionally, the company informed that three aircraft that were grounded for engine normalization are back in commercial operations.
The company's interest cost in the second quarter of FY19 surged to Rs. 233 crore from Rs. 190 in Q3FY18. For Q3FY19, the gross debt on Jet Airway’s balance sheet was at Rs. 8,411 crore while net debt stood at Rs. 8,052 crore. Nearly 60 per cent of the total debt of Jet is denominated in US dollars, which is exposed to the risk of currency fluctuations.
The company is facing a cash crunch which has resulted into deferment of salary payment to pilots, aircraft maintenance engineers and senior management for the last few months. In this liquidity crunch, the company is looking desperately for cash and is in the process of restructuring and reviving its financial.