You are here: Home » Companies » News
Business Standard

Avolon seeks to de-register 2 planes leased to Jet, woes deepen for airline

Avolon, one of the world's biggest aircraft lessors, applied to de-register two planes it had placed with Jet Airways Ltd, making it the first lessor to do so on a non-consensual basis

Reuters  |  SINGAPORE 

Jet Airways
The airline, now controlled by its lenders, has had to ground more than three-quarters of its fleet of 119 planes, many due to non-payment to lessors, leading to hundreds of flight cancellations.

 Avolon, one of the world's biggest aircraft lessors, applied to de-register two planes it had placed with Jet Airways Ltd, making it the first lessor to do so on a non-consensual basis with the struggling Indian

Two subsidiaries of Dublin-based applied to India's of Civil Aviation (DGCA) to de-register two 737-800s, according to notices published on the regulator's website.

has terminated the leases on the planes and currently has five more aircraft placed with Jet, said sources who declined to be identified due to the sensitivity of the matter.

A for declined comment on the matter.

The move by Avolon indicates an escalation of a crisis for Jet. The airline, now controlled by its lenders, has had to ground more than three-quarters of its fleet of 119 planes, many due to non-payment to lessors, leading to hundreds of flight cancellations.

With debt of more than $1 billion, Jet has struggled to pay lenders, suppliers, pilots and lessors for months and was on the brink of bankruptcy, but was bailed out last month by state-run banks.

The consortium of lenders temporarily took a majority stake in the company, and agreed to issue a loan of 15 billion rupees ($217 million) to meet Jet's obligations but the money has still not been released.

The lenders said late on Thursday that they intend to push forward with their plan to rescue Jet, but offered no clarity on interim funding, leaving the future of the in the balance.

Frustrated by the unpaid dues, Jet's lessors, including many of the world's biggest players such as GE Capital Aviation Services, and have taken control of their planes, sources said.

reported last month that some of Jet's lessors had begun terminating lease deals. Since then, they have also moved a handful of planes out of after getting a go-ahead from the

Once India's leading full-service carrier, Jet's operational fleet stood at 28 planes as of Wednesday, a said.

 

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, April 05 2019. 08:25 IST
RECOMMENDED FOR YOU