New Delhi: Lenders are exploring ways to utilise about 15 planes owned by Jet Airways and also discussing with authorities on protecting the valuable assets, including airport slots, of the now-shuttered airline, banking sources said. As they wait for completion of the bidding process for stake sale, the domestic lenders, led by SBI, are looking at options to raise funds from available assets of the carrier, which has served the Indian skies for 26 years.
Left with no cash to continue flying, the once-mighty Jet Airways on Wednesday suspended operations temporarily – a decision that has also left more than 20,000 employees as well as various other stakeholders in the lurch. The sources said the lenders are actively considering proposals, including from Air India, for utilising the planes owned by Jet Airways. The use of these idle planes would ensure that they remain in good condition as well as earn revenues. Jet Airways owns 16 aircraft, including 10 wide-body Boeing 777-300 ERs, rest of the planes were on lease.
“They (lenders) have been actively engaging with the company for almost nine months ever since the airlines started incurring cash losses and have been urging the management to come forward with a definite plan for resolution,” a source said. Unfortunately, the management and the promoter delayed in taking a decision leading to the present situation. The lenders continued to support the airline during this period,” a sources said.
The decision of founder-promoter Naresh Goyal to step down came as late as March 25 and he signed a binding agreement to facilitate stake sale only in the second week of April. By then, the airline’s operations had been severely affected, the source added. It further added that banks have now put in place a transparent bidding process for a new investor to take over the airline and the outcome would be known by May 10.
According to the sources, lenders have also reached out to relevant authorities to protect valuable assets for the airline, such as airport slots, as it would improve the chances of a better revival. The best revival prospect would be to have a new investor who brings in sufficient cash and also has a definite plan going forward. Banks had rejected emergency funding request of Jet Airways that forced it to ground operations. Meanwhile, All-India Bank Employees Association on Friday urged Prime Minister to take over grounded Jet Airways to secure the future of the 22,000-odd employees of the carrier and said that the government must ensure that banks are not forced to lend to the crippled airline.
AI chief meets SBI chairman
Mumbai: Air India (AI) chairman Ashwani Lohani held preliminary talks with his State Bank counterpart Rajnish Kumar in the Capital on AI’s interest in leasing five Boeing 777s from the now-grounded Jet Airways, sources close to the development said. The meeting lasted for over more than an hour at the Airlines House, the headquarters of the flag carrier in the national Capital. “During the meeting with Kumar, Lohani discussed his proposal on leasing five B777s of Jet Airways,” sources said. AI chairman will now take the proposal to the airline’s board for approval, after more internal discussions & subsequently, be sent to the aviation ministry for the final approval.
