Jet Airways' lessor to decide on repossessing plane after board meeting

MC Aviation Partners, an aircraft leasing subsidiary of Mitsubishi Corp, will wait for Jet Airways’ board meeting tomorrow before making a decision on repossessing planes it has leased to the carrier, a top executive said Wednesday.

India’s second largest airline by market share has taken five Boeing 737 NG planes on lease from MC Aviation and hasn’t paid it monthly rentals since October, the executive said requesting anonymity.

“Jet took the planes on lease in 2013. We have worked with the airline for many years and it has been in financial trouble before. But it has always come out of it. We hope a decision (on additional funding) will be taken tomorrow,” said the executive, adding the lessor hasn’t sent any repossession notice to Jet yet. He didn’t elaborate on the quantum of rental dues.


Jet, facing the worst financial crisis of its existence, has defaulted on loan repayments delayed lessor payments and employee salaries. The airline is slated to announce its Oct-Dec earnings on Thursday. Jet has been in talks with its partner Etihad Airways and its lenders for additional equity as well as conversion of debt to shares. Investors expect an announcement on funding between the board meeting and an extraordinary general meeting to be held on Feb 21.