The central government will not intervene in the matters of privately owned Jet Airways, which had defaulted on loan repayment last month, aviation minister Suresh Prabhu said on Monday.
Prabhu said on the sidelines of an event in Mumbai that the aviation ministry is, however, in talks with the finance ministry to bring down the costs of the industry, including lowering taxes on aviation fuel.
When asked if the government was willing to ask state-owned oil marketing companies and the Airports Authority of India (AAI) to allow some more time to Jet Airways to pay its dues, civil aviation secretary Rajiv Narayan Choubey said commercial decisions regarding payments and other business decisions will have to be sorted out by Jet Airways, and without government intervention.
“These are commercial decision which we don’t take in the ministry, and has to be sorted out bilaterally between Jet Airways and suppliers."
After Jet Airways defaulted on its debt repayment on 1 January, ratings agency Icra Ltd cut the long-term rating on loans and bonds issued by the private airline from C to D.
The company reported three consecutive quarterly losses of over ₹ 1,000 crore, each since March 2018.
It has also defaulted on payments to vendors and lessors, besides delaying salaries to a section of its workforce.
Mint had on 9 January reported that local lenders to Jet Airways (India) Ltd, led by State Bank of India (SBI), has proposed a $900 million resolution plan, comprising fresh equity infusion and restructuring of $450 million of its loans.