Jet Airways Quarterly Loss Once Again; Board Approves Debt Resolution Plan

Jet Airways reported a net loss of Rs 587.77 crore for the third quarter of 2018-19, according to the company's statement to the exchanges. For the same period in the previous year, the company made a net profit of Rs 165.2 crore. This is the airlines' fourth quarterly loss.

The revenue from operations for October-December 2018 period stood at Rs 6,147.98 crore. In the release, the airline also said that Indian banks, led by State Bank of India, have initiated a comprehensive Resolution Plan under the RBI (Reserve Bank of India).

The resolution plan would include infusion of funds, restructuring of debt and monetization of assets that was approved by the Board of Directors on 14 February 2019.

A Bank Led Provisional Resolution Plan (BLPRP) has been considered and approved by the Board of Directors and currently has estimated a funding gap of around Rs 8,500 crore (including proposed repayment of aircraft debt of around Rs 1,700 crore) to be met by appropriate mix of equity infusion, debt restructuring, sale/sale and leaseback/refinancing of aircraft along with other things.

"The BLPRP will be presented for consideration of each of the following: (i) the consortium of Lenders (ii) the Overseeing Committee of the Indian Bankers' Association (iii) the Board of Directors of Etihad Airways, and (iv) the Promoter," it said.