MUMBAI: Top Indian carrier Jet Airways has sought government help to secure additional working capital loans from banks and an extended credit period from state-run oil marketing companies, the Times of India reported on Wednesday.
The airline, which has a two-month credit period with oil companies, hopes to get this extended to three months the report quoted an unnamed company official as saying.
Jet also wants help to secure 10 billion rupees ($202.57 million) in working capital loans, the official added. A company spokesperson could not be immediately reached for comment by Reuters.
In January, Jet posted its fourth straight quarterly loss, as it struggled with high fuel costs and low fares. India's airline companies face a severe cash-crunch and have a massive debt pile of about $20 billion. Jet itself has a debt of about 140 billion rupees ($2.84 billion), the report said.
All but one of India's six main airlines are loss-making, with state-run Air India on government life-support. Jet is yet to pay January salaries to employees, the report said. In a move to help the embattled sector, the federal government recently allowed India's airlines to import jet fuel directly.
Copyright Reuters, 2012
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