Jet says it defaulted payment to aircraft lessors but not for AAI

Last Updated: Wed, Oct 31, 2018 18:32 hrs
Jet Airways (AP photo)

Crisis-hit Jet Airways on Wednesday clarified to exchange houses that it is has received notices from "few aircraft lessors for payment defaults."

The aircraft was being questioned by exchange houses on a media report that said that Jet had defaulted on payments of lease rentals and received notices from Airports Authority of India on dues.

Jet in its clarification said the "company is actively engaged with its lessors and has also been providing them with regular updates on our ongoing efforts to improve liquidity."

The correspondence signed by Kuldeep Sharma, Vice President and Company Secretary, further added, "Whilst the company is in receipt of notices for payment delays/defaults from few aircraft lessors, they are mindful of the challenges currently faced by the Indian aviation industry and they have been supportive of the company's efforts."

"We also wish to clarify that the company is current on its payments to Airports Authority of India (AAI) and no show-cause notice has been received by the company from AAI," added the report.

The airline has been facing rough weather in recent times. The rise in crude prices has affected its business, and reports of employee salaries being withheld have done more bad to the scrip.

On Wednesday, after the end of trading hours, scrips of the aviation company were trading Rs 5 down at Rs 222.30 on the Bombay Stock Exchange.