Jet Airways defaults on rental fees, seven more planes grounded

Mumbai: Lessors to Jet Airways (India) Ltd have grounded seven more planes as the cash-strapped carrier has defaulted in paying rental fees. In a statement on Wednesday, the airline said it is “making all efforts to minimize disruption to its network” due to the latest aircraft grounding, and “is proactively informing and re-accommodating its affected guests”.

The airline said it “is actively engaged with all its aircraft lessors and regularly provides them with updates on the efforts undertaken by the company to improve its liquidity”.

Jet Airways has been struggling with cash flows for more than six months due to higher fuel costs and intense competition. It has delayed payment to lessors, airport operators, oil marketing companies, and a part of its staff to keep the company running.