Jet Air defaults on loan repayment

The full-service carrier, which has been grappling with financial woes for some time now, has been making delayed salary payments to its staff. “Payment of interest and principal installment due to the consortium of Indian Banks (led by State Bank of India) on December 31, 2018 has been delayed due to temporary cashflow mismatch,” the airline said in a stock filing.

The airline, which is also looking to raise fresh funds, said it has engaged with them (banks) in relation to the loan repayments.

The SBI is already carrying out a forensic audit of Jet Airways for alleged irregularities. The carrier has posted three consecutive quarterly losses of over Rs 1,000 crore each since March 2018. Rating agency Icra Wednesday downgraded its ratings on the airline’s long-term and short-term fund facilities. “There have been delays in the implementation of the proposed liquidity initiatives by the management, which have aggravated its liquidity. The company has already been delaying its employee salary payments and lease rental payments to the aircraft lessors,” Icra said in a note.