More trouble for Jet Airways: Airline defaults on lease rentals

Jet Airways has again defaulted, this time on the rental payments on its leased aircraft. The airline has been served a notice by the Airport Authority of India and the aircraft lessors over the delay in payments. The beleaguered airline is scouring for funding as it is struggling to keep up its expenses amid a stiff competition in the aviation sector, hike in fuel prices and declining rupee. The airline's fleet comprises ATRs, Airbus, and Boeing jets. Out of its total fleet of 124 aircraft, as many as 108 are on lease. Jet Airways is in desperate need of fresh funds worth over US$1b. The airline has said it is implementing a turnaround strategy but nothing seems to have worked so far. Now, the payment default on aircraft rentals could force it to return 57 older Being 737 planes to resolve the disputes. <br/>