New Delhi: Aviation regulator DGCA is keenly looking at easing the passengers’ woes due to surging air fairs as the cash-strapped Jet Airways is on a grounding spree following the regulator banned the Boeing 737 Max aircraft after the Ethiopian Airlines crash killing 157 people, including four Indians. Directorate General of Civil Aviation (DGCA) will meet the airines to discuss the increasing fair that is leaving the pessangers in a mess.
After the DGCA grounded all 12 of SpiceJet’s 737 Max aircraft on March 13, the problem of rising air fares in the Indian market has “aggravated”, a government official said. Debt-ridden Jet Airways on Monday said it has grounded four more planes, taking the number of aircraft that are non-operational due to non-payment of lease rentals to 41. It also cancelled all the flights from Abu Dhabi with immediate effect from March 18.
According to its website, Jet Airways operates through a fleet of 119 planes. For last few weeks, passengers have been venting their ire on social media as Jet Airways’ flight cancellations increased gradually due to the rising number of grounded aircraft. Grappling with financial woes, the carrier has been looking at ways to raise fresh funds.
In a filing to the stock exchanges on Monday, the airline said, “An additional four aircraft have been grounded due to non-payment of amounts outstanding to lessors under their respective lease agreements.” On March 8, Jet Airways chairman Naresh Goyal wrote to Etihad Airways Group CEO Tony Douglas, seeking an urgent funding of Rs 750 crore and also warned that any delay in fund infusion might result in grounding of the carrier. He had said that more than 50 aircraft were grounded amid increasing arrears of vendors and salaries to a section of employees.
No money to pay interest: Jet Airways
Mumbai: Standing on the verge of a second default in paying interest to its debenture-holders, the debt-laden Jet Airways on Monday said that is has no money pay interest to its debenture-holders, due on Tuesday. Earlier, the struggling airline had defaulted on its foreign debt servicing on January 2 when it defaulted on repayments on its external commercial borrowings. However, the airline did not divulge details of the quantum of interest due on Tuesday nor the quantum of the debt on this particular account.
