Jet Air Said to Seek to Rework Vendor Contracts to Cut Costs
- Beleaguered carrier missed debt payment to lenders on Dec. 31
- Lenders said to demand revival plan by month-end for loans
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Debt-laden Jet Airways India Ltd. is trying to renegotiate contracts with its vendors as lenders demand a revival plan by month-end from India’s second-largest airline by passengers, according to people with knowledge of the discussions.
The Naresh Goyal-led airline is in talks to defer or reduce payments to vendors including aircraft lessors and those providing engineering, spare parts, credit card and airport services, said one of the people, who asked not to be identified as the discussions aren’t public. Lenders have said any short-term loan to keep the carrier afloat would be based on the plan proposed by Jet Airways and its equity partner Etihad Airways PJSC, according to the people.