India’s biggest full-service carrier by market share has been facing financial woes for close to six months since it owes money to banks, pilots, vendors and lessorsNew Delhi: State-owned Air India has said that it will not accept any passengers that have their tickets cancelled by the cash-strapped Jet Airways, presently undergoing a cash crunch. Airlines generally accommodate passengers when another carrier cancels a flight as a result of various exigencies. The airline of the cancelled flight would also have to pay the other carrier for accommodating passengers.
“With immediate effect and till further notice, Jet Airways (India) Limited and Jet Lite Limited documents (including Flight Interruption Manifest and endorsed/involuntary rerouted/rebooked/exchanged/reissue documents) are not to be accepted for travel on Air India flights,” said an order of Air India dated March 1.
Around 15 Jet planes grounded
Close to 15 Jet Airways aircraft have been grounded by the lessors owing to non-payment. To meet its debt of around Rs 8,200 crore, Jet said they have been making efforts to raise funds by measures including equity infusion, debt restructuring and sale, sale and leaseback or refinancing of aircraft.
India’s biggest full-service carrier by market share has been facing financial woes for close to six months, since it owes money to banks, pilots, vendors and lessors because of rising fuel costs and intense competition. In fact, pilots of the carrier have been threatening to take action since there have been delays in salary payment.
Earlier this week, Jet founder Naresh Goyal decided to step down as the chairman of the cash-strapped carrier’s board, agreeing to bring down his stake from 51 percent to 20 percent.
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