March 10, 2019

Jet Airways gets emergency funds

Jet Airways has secured about $300 million-equivalent in fresh credit facilities from state-run Punjab National Bank (PNB) that could provide a temporary financial lifeline to the cash-strapped airline.

The Mumbai-based airline has raised foreign currency term loans worth about $160 million and a $140 million non-fund based credit facility from PNB, according to loan documents.

Although documents state that Jet Airways will use funds for working capital, it is expected that the carrier would primarily use proceeds to make aircraft lease payments and to catch up on salary arrears.