JetAirways of India has admitted that it’s grounded 25 aircraft because it cannot afford to lay its lease owners.
The company which was saved from total collapse by a cash injection of over $1 billion from Etihad, itself in serious financial trouble, is said to be negotiating with leaseholders to prevent repossession.
The company is desperately trying to refinance its debts and ownership, forcing its founder and Chairman, Mr Naresh Goyal into taking a back seat seems like no option.
The airline needs $1.2 billion to cover a gaping financial hole that seems to be growing constantly.
The longer this saga goes on the more likely the entire company is to fail, and things in India take time. The recent spat with Pakistan has had stock markets on edge and made things more difficult.