Lessors are closely watching the board meeting of Jet Airways, set to be held on February 14, as they will decide on the future of the planes leased to the cash-strapped airline depending on the outcome of the meeting on Friday, sources privy to the developments told CNBC-TV18.

MC Aviation, a plane leasing company, is one such lessor and is cautiously looking at the developments at the Mumbai-based airline as many as five of its Boeing B737 aircraft have not been paid for by Jet Airways since October.

“We have not received lease payment for five of our B737 since October. This is not the first such instance of delayed payment. The airline had not paid for a long time around 2014 as well,” a source aware of the development said.

The lessor may even look at repossession of the five planes if Jet Airways fails to approve a viable recapitalisation plan at its February 14 board meeting, the source added.

“We will take a decision after the meeting. We are hoping that recapitalisation will be approved. If not, then we may look at repossession,” the source added.

The airline told CNBC-TV18 that it has been able to reach agreements for certain dues.

“Jet Airways has been privileged to have a long-standing relationship with most of its vendors, partners and service providers over the last two decades. Considering the partnership with our vendors, we have been able to continuously reach agreements for certain past due payments,” the airline said in a statement.

The debt-laden airline had grounded four of its planes on account of non-payment of lease rentals last week. The airline has been at the centre of an acute financial crisis since July and is looking to restructure debt and raise fresh funds.

The airline will report its October-December earnings on Thursday.

First Published:Feb 13, 2019 12:27 PM IST