Jet Airways Shares Drop After Airline Grounds More Planes

Shares of debt-ridden Jet Airways fell more than 6 per cent on Thursday, a day after the Mumbai-based airline said it had grounded seven more aircraft. Jet Airways shares fell as much as 6.15 per cent to Rs. 211 on the BSE, and 6.30 per cent to Rs. 210.15 on the National Stock Exchange. 

Jet Airways informed the stock exchanges post-market hours on Wednesday that it failed to pay lessors under their respective lease agreements. The carrier also noted that it was "actively engaged" with all its aircraft lessors and regularly provides them with updates on the efforts undertaken by it to improve its liquidity.

Jet Airways had earlier grounded two planes on February 23 and four planes on February 7, taking its total tally of grounded planes to 13. Meanwhile, the company is also making all efforts to minimize disruption to its network and is proactively informing and re-accommodating its affected guests, Jet Airways said.

Aircraft lessors have been supportive of the company's efforts in this regard, it added.

With debts of more than $1 billion, Jet has defaulted on loans and has not paid pilots, leasing firms and suppliers for months. The loss-making airline approved a rescue deal in mid-February after months of talks to plug the Rs. 8,500 crore funding hole.

The plan, which has also been approved by Jet shareholders, includes selling a majority stake to a consortium led by State Bank of India, the airline's biggest creditor, at 1 rupee.

Jet has a fleet of about 123 mainly Boeing planes, including 16-owned aircraft. The rest are leased from a range of lessors including GE Capital Aviation Services, US-based BBAM and Japan's SMBC Aviation Capital, news agency Reuters quoted sources as saying.