Jet Airways (JAI, Mumbai International) has agreed with its commercial partners on terms intended to reduce the liquidity crunch the airline is currently facing, the Business Standard has reported.

According to the newspaper's sources, Boeing (BOE, Washington National) agreed to temporarily release and return a portion of the pre-delivery deposits paid towards the 125 B737-8s ordered by the Indian carrier. Jet Airways will have to repay the money to the manufacturer before taking delivery of the aircraft.

It is unclear how much money the carrier has received from Boeing. The manufacturer offered a similar reprieve to fellow Indian airline SpiceJet (SG, Delhi International) when it was facing a cash crunch in 2014.

Jet Airways is also reportedly negotiating terms with lessors, seeking to lower the cost of the financing of its fleet. According to the newspaper's sources, the airline so far approached SMBC Aviation Capital and GECAS.

The carrier is further seeking to alter the terms of its existing debt facilities with foreign lenders. Jet Airways approached its creditors seeking a waiver of a loan covenant which would free up to USD185 million in fresh capital.

Airports Authority of India (AAI), the state-owned operator of most of India's airports, also agreed to extend the credit period for all airport fees and charges for the airline from 15 to 30 days.

Jet Airways is currently facing a serious liquidity crisis caused in part by the rising fuel prices and an increasingly competitive market in India. Local media outlets reported in early August that the full-service carrier, 24%-owned by Etihad Airways, would only have enough cash for 60 days of operations. The airline has denied it is facing imminent insolvency. Jet Airways however delayed the publication of its quarterly results earlier this month with its board now planning to meet on August 27 to approve the results.

The carrier is also seeking USD350-400 million in fresh loans from banks, equity funds or other airlines, particularly its commercial partner Delta Air Lines.

The 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.