Jet Airways is reportedly in talks with potential investors after defaulting on loan repayments to banks and seeing its credit rating downgraded.
In a stock exchange statement, the airline said payments to banks led by the State Bank of India, due on December 31 had been delayed “due to temporary cash flow mismatch”.
The Indian carrier, launched in 1992 as a private sector rival to Air India and in which Etihad holds a 24% stake, is in talks with its main investor and others to negotiate a cash injection. The crisis at the carrier means some staff have seen wage payments deferred.
Rising fuel prices and the success of IndiGo, a budget airline, have hit Jet Airways and its credit rating is now D class. Jet Airways’ debt totals around $243 million.