ICRA cut Jet's long- and short-term ratings on Wednesday, citing the payment delays. Timely implementation of liquidity initiatives, including equity infusion and a stake sale in the airline's loyalty programme Jet Privilege, will be critical to the company's credit profile, ICRA said. The 25-year-old airline is facing financial difficulties and owes money to pilots, lessors and vendors. Intense pricing competition, a weak rupee and rising fuel costs weighed on Indian airlines in 2018.
Jet, India's biggest full-service carrier by market share, had a debt of 80.52 billion rupees ($1.15 billion) as of Sept. 30, 2018. Jet and its second-largest shareholder, Etihad Airways, are in talks with bankers on a rescue deal that may involve the Abu Dhabi-based airline increasing its stake from 24 percent at present.