New Delhi: Jet Airways is actively engaged with all its aircraft lessors and are being updated about efforts to improve liquidity, the airline said on Wednesday amid flight cancellations due to grounding of aircraft. The crisis-hit carrier also said that flight cancellations were necessitated due to a scheduled termination of an aircraft lease and to carry out an engine normalisation exercise. “The company is actively engaged with all its aircraft lessors and has been regularly providing updates on the efforts undertaken by the company to improve its liquidity,” a Jet Airways spokesperson said. According to the airline, the aircraft, temporarily grounded for the engine normalisation exercise, are therefore expected to rejoin the scheduled operations on February 1.
“Owing to flight cancellations arising out of these temporary groundings, the company is making all efforts to minimise disruption to its network and informing and re-accommodating its affected guests,” the statement said. The company is also providing periodic and requisite updates to the Directorate General of Civil Aviation (DGCA), it added. Jet’s troubles have been worsened by a rising debt-pile, amid intense competition in the Indian aviation sector and higher oil prices. In the latest effort to save itself, the airline will now seek shareholder approval next month to convert existing debt into equity. It was reported that Jet had been asked by GECAS, the aircraft financing and leasing business of General Electric Co, to ground at least five Boeing 737 planes due to non-payment of dues. Jet said in its statement that it had not ground any aircraft due to a notice from GECAS. The airline is in the process of delivering three aircraft to lessors due to the scheduled expiry of lease terms, it said in a statement.
Jet added that three of its aircraft were temporarily grounded for engine normalization, which is expected to be completed by Friday.Two others were on ground – one for scheduled termination of the engine’s lease and another for technical reasons. Crisis talks between the airline and its lessors had failed to ease a row over late payments, prompting some lessors to explore taking back aircraft, three people familiar with the matter told Reuters earlier this month.
