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Tuesday, 16 April, 2019, 19 : 15 PM [IST]

US Exim Bank to recall Jet loans; to repossess 10 Boeing 777

As per an ET report by Mihir Mishra, the US Exim Bank has recalled all loans extended to Jet Airways for buying Boeing aircraft and is likely to take the possession of these planes, thus, taking away all the long-haul Boeing 777 aircraft that the airline owns.

Sources said that the amount of loan is about INR 2,000 crore and the Bank is soon going to initiate the process of possessing the aircraft. “The bank can take all 10 Boeing 777 aircraft that the airline owns and that would mean that the airline would not have aircraft left to operate,” said an airline executive, who did not want to be identified.

Email sent to US Exim Bank and Jet Airways remain unanswered.

Jet Airways, which is going through its worst-ever financial crisis, has cancelled flights due to grounding of aircraft by lessors. The lessors were grounded aircraft due to non-payment of lease rentals by the airline.

The airline has temporarily cancelled its international operations and has grounded these aircraft, as it is not economical to operate these aircraft in the domestic sector. The airline is operating a fleet of 6 to 7 aircraft that includes one Boeing 737, which is being operated by its subsidiary JetLite.

The airline board is discussing options on the future of the airline that includes temporary grounding of the airline. Meanwhile, banks are discussing ways to provide some interim funding into the airline till the time the new investor gets onboard. (Source: Economic Times)
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