Jet Airways says four aircraft grounded for non-payment to lessors

Saddled with debt of about $1.14 billion, Jet Airways has been hit by fierce competition, rupee depreciation and high oil prices. The full-service airline, which controls a sixth of India's booming aviation market, owes money to banks, vendors and lessors.

Reuters last month reported that lessors were considering taking back planes after a meeting with the airline that one source familiar with the matter described as an ill-tempered showdown.

Jet Airways last week said it would seek shareholder approval at a February 21 meeting to convert existing debt into equity and allow its lenders to nominate directors to its board, in an effort to resolve its financial issues.

The Business Standard last week reported Jet had agreed to most conditions set by shareholder Etihad Airways for offering a lifeline.

The deal would result in Jet Airways' founder and chairman Naresh Goyal reducing his stake to 22 percent from 51 percent and stepping down from the board, the report said, citing sources.