The lenders are looking to leverage 16 planes which belong to Jet Airways fleet. These can be used for raising funds.
As state-run Air India eyes Jet Airways’ routes and aircraft, lenders are looking for ways to make the best use of 16 planes of the ailing airline as well. The lenders are also in discussion for protecting valuable assets of the company including airport slots, PTI reported sources as saying.
With the airline announcing the suspension of its operations on a temporary basis amid heavy cash crunch, the lenders are now waiting for the bidding process for stake sales. “The domestic lenders, led by SBI, are looking at options to raise funds from available assets of the carrier,” PTI said.
Aviation firms in India have started to pick up from where Jet Airways left with Air India seeking approval from lenders to fly five grounded Boeing 777 planes which belong to Jet Airways. The lenders are left with no viable option as well as they seek funds. “The lenders are actively considering proposals, including from Air India, for utilising the planes owned by Jet Airways,” PTI cited sources adding that the same will ensure that the otherwise idle planes earn revenues for the lenders while remaining in good condition.
Not all is lost for Jet
Jet Airways will have the first right on its slots once it revives, Pradeep Singh Kharola, Aviation Secretary said yesterday. He also said that bidders have shown a keen interest in Jet Airways, ET Now reported. Meanwhile, the aviation secretary told 20-30 Jet planes will be leased within India. The interim slots allocation for Jet Airways is expected to run for three months.
However, the lenders had requested the officials to retain 40% of Jet Airways’ slots so that the new owner has somewhere to begin with once they take over, Business Standard had earlier cited sources as saying.
The troubled airline shut down its operations on 17 April 2019 with its last plane from Amritsar to Mumbai. After the board tried one-last-time for Jet Airways’ survival, requesting Rs 400 crore of immediate funds and being denied the same, the airline was left with no other course of action but to shut down. Meanwhile, the fate of its 20,000 employees now hangs in suspense.
The State Bank of India-led consortium of lenders will wrap up their resolution plan by 10 May 2019.