India Jet launches seven more planes amid fears of closure

New Delhi: India's indebted debt-laden company has detained seven more aircraft after failing to pay for its aircraft leases, putting pressure on its founder as a financial crisis threatens its survival.

The airline, besieged by more than $ 1 billion in debt, had stopped six planes earlier in the week and was facing the threat of a pay strike.

In a late statement on Friday announcing the latest groundings, the airline said it "was making every effort to minimize disruption to its network … and proactively inform and reorganize affected customers."

The Mumbai-based airline has more than a quarter of its fleet of 119 aircraft in operation.

Jet, which employs more than 20,000 people, has also been under pressure from pilots who have not been paid in time, with unions threatening to leave if wages are not forthcoming.

The airline, the second-largest Indian carrier in terms of market share, says it has been hit hard by fluctuating world prices for crude oil, the weakness of the rupee and fierce competition from its budget rivals.

In February, she obtained a bailout of $ 1.19 billion from lenders, including the State Bank of India, to close a funding gap.

However, the crisis has worsened since then, due to the stalemate in negotiations between Jet's founder, Naresh Goyal, and the other main player in the company, Etihad Airline.

Local media announced Saturday that Goyal would be able to raise the funds needed to save the airline he created 26 years ago.

"Banks can wait a few days and if Goyal is unable to do what is necessary, the first will ask him to resign from the board of directors with his candidates," the Times of India newspaper quoted sources as saying.

A spokeswoman for Jet however told AFP that the carrier hoped to "successfully resolve the current situation in the coming days".

The airline and its key stakeholders were working on finalizing a bank-led plan to "ensure the airline emits a strong and resilient financial strength."