Indian banks are unwilling to provide fresh loans to debt-ridden Jet Airways (JAI, Mumbai International) and would rather the carrier raise much-needed capital through a share sale instead.
The Indian carrier has been seeking USD300-400 million in new capital and has reportedly approached banks, global private equity firms, and other airlines, such as Delta Air Lines. Etihad Airways, which controls a 24% stake in Jet Airways, is reportedly unwilling to inject more capital into the airline.
According to Live Mint, sources have said banks are now awaiting the release of the carrier's latest financial results for the quarter ended June 30, 2018. Jet Airways initially intended to publish the results in early August but withheld them at the auditors' request "pending closure of certain matters".
The National Stock Exchange then asked the carrier to clarify whether its board had asked the auditors to delay their publication or if the auditors themselves had not endorsed them.
Until the results are out, the Indian financial institutions would rather refrain from any further investments in the airline, the sources said.
The Indian carrier had a total debt of INR81.5 billion rupees (USD1.2 billion) as of March 31, 2018, of which nearly INR60 billion (USD858 million) is due for repayment by March 2019. In 2017, inclusive of its subsidiary JetLite, it lost INR6.4 billion (USD93.1 million). The situation at the airline has worsened recently due to soaring fuel prices and overcapacity in the Indian market.
According to media reports from early August, Jet Airways may run out of cash by early October. The airline has since refuted these allegations.
