Saddled with more than one billion dollars of debt, Jet Airways is struggling to stay afloat Jet Airways chairman Naresh Goyal told the airline's pilots on Monday he needed "a further short time" to finalise a rescue deal for the cash-strapped carrier as the process is complex, reported news agency Reuters.
Mr Goyal's letter comes at a time when the carrier is reeling with a heavy debt of one billion dollars.
In a letter, Mr Goyal said he was "committed to have the process completed as soon as possible and restore much needed stability" to the airline's operations, and that he would make it a top priority to settle delayed salary payments for pilots and some other staff once a deal is finalised.
Here are 10 things to know:Mr Goyal also said talks for the rescue deal with the airline's biggest shareholder, Etihad Airways, and lenders, led by State Bank of India (SBI), were ongoing.Earlier this month, in a letter to Jet Airways' employees, Mr Goyal had said the situation should ease by March 18.
He had said: "Ipersonally appeal to each one of you for your continued support for just a little while longer so that we can cross the line together."Etihad, in a separate statement, said on Monday it was working with the lenders and Jet Airways on a solution for the Indian airline.Earlier in the day, Jet Airways said it has grounded four more planes and would delay paying interest on maturing debt.With the grounding, the carrier has taken the total number of planes tied down to 41, or more than a third of its entire fleet.The airline said it will delay paying interest to its debenture holder, due March 19, owing to financial constraints.An official with State Bank of India (SBI), Jet's largest creditor, said on Friday that the consortium of lenders should reach a final resolution plan to rescue the embattled airline in one week.Saddled with more than one billion dollars of debt, Jet is struggling to stay afloat.The country's second-largest carrier has delayed payments to its pilots, suppliers and lessors for months and defaulted on loans.Shares in Jet, which have fallen 15 per cent so far this year, closed 2.05 per cent higher at Rs 237 on the BSE on Monday.
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