Jet Airways has delayed a payment to a consortium of Indian banks.
The debt-laden private Indian carrier cited a “temporary cash flow mismatch” for the default.
The carrier is holding discussions with the banking consortium led by State Bank of India.
Jet Airways and its second-largest shareholder Etihad Airways are reported to be in talks with bankers on a rescue deal that may involve the Abu Dhabi-based airline increasing its stake from 24%.
The deadline for the payment was December 31, the airline disclosed yesterday.
The 25-year-old carrier is facing financial difficulties and owes money to pilots, lessors and vendors, Reuters reported. Intense pricing competition, a weak rupee and rising fuel costs weighed on Indian airlines in 2018.
Jet Airways serves 66 destinations with a fleet of 124 aircraft and started a Manchester-Mumbai service with five flights a week from November.
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