The Indian government will not intervene to assist troubled carrier Jet Airways as it looks to raise more cash.
Minister of state for civil aviation Jayant Sinha says that Jet’s efforts to raise more debt and equity capital are an ” internal matter of the airline.”
“Each airline prepares its business plan on the basis of their own market assessment and liabilities. Based on their business plan, the efficient operations and financial resources are the responsibility of the airlines.”
Local media reports indicate that the carrier is in talks with the state-owned State Bank of India for a fresh loan of Rs15 billion ($225 million) aimed at bolstering its working capital.
However, no official word has been made by the airline on such developments.
Jet defaulted on payments to a consortium of Indian banks at the end of December 2018, which it blamed on a “temporary cashflow mismatch”.
The bank defaults led credit ratings agency ICRA to downgrade the airline’s long-term credit rating to D, its lowest level.
Jet has been seeking to raise new capital amid a challenging Indian domestic market that has been putting pressure on the finances of a number of carriers there. It has reportedly deferred a number of salary payments to staff, and has defaulted on some aircraft lease rentals.