Jet Airways prolonged death spiral continues. The airline has now canceled all international flying as there are only 14 planes left (one was repoed in Amsterdam earlier this week) and also has trouble getting them fueled.
Indian regulator requires an airline to have minimum 20 planes before they are allowed to fly internationally. Jet Airways is down to 14 that includes seven 777’s, one A330 and rest are single aisle aircraft.
Here’s an excerpt from Bloomberg (access their piece here):
The carrier, once India’s biggest by market capitalization, was forced to ground 10 more jets after it failed to pay lease rentals on time, Jet said in a stock exchange filing Thursday. That means the carrier is now operating fewer than 20 planes, compared with a fleet of 124 as recently as January.
Jet Airways’ creditors have extended a deadline for potential buyers to declare their interest in purchasing a controlling stake until Friday evening. Finding a buyer for Jet Airways is crucial to the legacy of Indian Prime Minister Narendra Modi as he faces an election that began April 11 after holding power for five years.
Here’s an excerpt from International Flight Network (access their piece here):
The struggling carrier now operates a total of only 14 aircraft, down from a fleet of 124 in December last year, The Economic Times of India reports. Jet Airways’ last remaining long-haul flights, to London, Paris and Amsterdam, were cancelled on Thursday evening. Cancellations have disrupted millions of travellers over the past few months. The airline owes more than US $500 million to passengers affected by cancelled flights, government estimates show.
On Wednesday, a Boeing 777-300ER by Jet Airways was repossessed at Amsterdam Schiphol Airport. This was ordered by a Dutch court over the nonpayment of cargo ground handling fees.
Jet Airways has grounded most of its fleet, because it is unable to pay lessors and cannot afford required maintenance for some aircraft.
It seems that the likely plan is to keep the airline “flying” few routes until the Indian elections are over and then pull the plug.
$1B in debt and another $500M owned to the passengers affected by all these cancellations? It certainly would be a miracle if someone outside of Indian government or government controlled entity invested some cash in to this airline.