Jet Airways defaults on loan repayment to banks, credit rating slips to 'D'

Jet Airways has defaulted on loan repayment that was due end of December, in yet another definite sign of a serious financial crisis at the country’s second largest airline by market share. Jet’s  lenders will now have to initiate the process for resolution of the stressed assets within 180 days as per the Reserve Bank of India norms.

Over the past several months, the airline has struggled to pay vendors and staff salaries on time. The latest default has prompted ICRA to assign a ‘D’ rating to the airline’s Rs 10,963 crore fund and non-fund based facilities. This is the seventh