INSUBCONTINENT EXCLUSIVE:
patience with the heavily indebted carrier
Jet Airways said in a regulatory filing late on Thursday that it is actively engaged with all its aircraft lessors and regularly provides
them with updates on efforts undertaken by it to improve liquidity
Aircraft lessors have been supportive of Jet Airways' efforts in this regard, the airline noted.Four aircraft have been grounded due to
non-payment of amounts outstanding to lessors under lease agreements.The airline, India's second-largest by market share, did not name the
leasing firms involved, nor clarify whether the groundings were voluntary or forced
Jet Airways has a large fleet of mainly Boeing Co 737 jets which it sources from over 20 lessors."The company is making all efforts to
minimise disruption to its network due to the above and is proactively informing and re-accommodating its affected guests," Jet Airways said
in its statement to the Bombay Stock Exchange.Jet Airways could not be reached for further comment outside business hours.Saddled with debt
of about $1.14 billion, Jet Airways has been hit by price competition, rupee depreciation and high oil costs
The full-service airline, which controls a sixth of the country's booming aviation market, owes money to banks, vendors and
lessors.Lessors to Jet Airways include AerCap Holdings NV, BOC Aviation Ltd, Avolon, GE Capital Aviation Services, Aircastle Ltd, DAE
Aerospace, SBMC Aviation Capital and Jackson Square, according to past announcements and registration documents.News agency Reuters last
month exclusively reported that lessors were considering taking back planes after a meeting with the airline that one person familiar with
the matter described as an ill-tempered showdown.The situation has since worsened, the person told Reuters on Thursday."Patience is running
very thin and some lessors are not convinced about a viable rescue plan for Jet," the person said, declining to be identified due to the
sensitivity of the matter
"Nobody wants to be the last one pulling out their aircraft."Jet Airways last week said it would seek shareholder approval at a February 21
meeting to convert existing debt into equity and allow its lenders to nominate directors to its board, in an effort to resolve its financial
issues.The TheIndianSubcontinent last week reported Jet had agreed to most conditions set by shareholder Etihad Airways for offering a
lifeline.The deal would result in Jet Airways' founder and chairman Naresh Goyal reducing his stake to 22 percent from 51 percent and
stepping down from the board, the newspaper said, citing sources.
