October 31, 2018 / 10:35 AM / 19 days ago

UPDATE 1-India's Jet Airways gets payment delay notice from aircraft lessors; shares dive

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Oct 31 (Reuters) - Jet Airways Ltd said on Wednesday it has received notices on payment delays from a few aircraft lessors, adding to the debt-laden airline’s woes.

Profits of airlines in the world’s fastest-growing aviation market have been dented with the surge in crude oil prices and a depreciating rupee.

Jet has been struggling to keep itself afloat and it had said in August that it will inject funds and cut costs to turn around the business.

Jet said in a statement on Wednesday that it had got notices for payment delays/defaults from few aircraft lessors, but did not elaborate further.

"... they (aircraft lessors) are mindful of the challenges currently faced by the Indian aviation industry and they have been supportive of the company's efforts," the airline said here in a statement.

Jet’s shares plunged as much as 10.8 percent in their biggest daily percentage fall since September 25, before ending the day nearly 6 percent lower.

The company also said its payments to the Airports Authority of India are up-to-date and it had not received any “show-cause” notice from the body.

Reporting By Arnab Paul and Tanvi Mehta in Bengaluru; Editing by Amrutha Gayathri and Vyas Mohan

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