Jet Air said to seek to rework vendor contracts to cut costs

Debt-laden Jet Airways India 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, according to the people. The beleaguered Indian carrier missed an interest and principal repayment at the end of last year, giving it about 90 days to clear the dues and avoid being declared a non-performing asset. State Bank of India, the nation’s largest lender, is hosting another round of meetings with the Jet Airways management and vendors on Tuesday to find common ground, the people familiar said. “Jet Airways remains optimistic about outcomes with regard to discussions with its lenders,” the company said on Monday. “The talks are progressing well and we hope to reach a positive resolution at the earliest.”<br/>