Jet Airways served with rent default notice by US-based ILFC

Press Trust of India Posted online: Friday, Sep 27, 2013 at 0000 hrs
Mumbai : Naresh Goyal-promoted Jet Airways has been slapped with a default notice by one of its lessors, ILFC, for non-payment of rentals. Jet, however, said it is negotiating with the US-based International Lease Finance (ILFC), and hopes to reach an amicable settlement.

The default amount could not be ascertained.

According to reports, Jet has been served a notice by ILFC for non-payment of rentals of its about six Boeing 737s.

The aircraft for which the rentals have not been paid are currently with both Jet Airways and its low-cost arm JetLite.

“Jet Airways has a long and excellent relationship with ILFC. Jet and ILFC are currently in discussions to reconcile their respective accounts to identify the exact dues. On completion of the same, the accounts will be settled,” a Jet spokesperson said.

The Jet Group has 115 planes, both narrow-body and wide-body aircraft, a majority of them leased.

The airline reported a net loss of R355.38 crore in the June quarter and is pinning hopes on the impending R2,058 crore deal by divesting 24% stake to Etihad to overcome the financial problems.

The deal, which is awaiting approval from the Cabinet, the market regulator Securities and Exchange Board of India and competition watchdog Competition Commission of India, has been challenged in the Supreme Court by BJP leader Subramanian Swamy, alleging corruption.