Exit the cockpit

Lenders must ensure Jet promoters lose operational control

India’s largest private full-service airline, Jet Airways, is struggling under the burden of its debt. It owes a consortium of banks and other lenders Rs 8,000 crore, of which over Rs 6,000 crore has to be repaid in the next two years. This problem has become a crisis since the airline defaulted on some repayments at the turn of this year, leading to a further downgrade of its debt. Nor is it making money — it has reported three consecutive quarters of losses of over Rs 1,000 crore, which makes its possibility of repayment without a funds infusion or debt