Jet Airways crisis: Naresh Goyal steps down
Jet Airways crisis: Naresh Goyal steps down

New Delhi: Lenders of bankrupt Jet Airways may recover sub-10% of the carrier's total outstanding dues in case of liquidation if no suitor succeeds in buying the airline, two sources told Reuters.

The airline owes nearly Rs 300 billion ($4.20 billion) to its financial and operational creditors. They are likely to recover only $300-$400 million from the sale of Jet's assets, the sources, who have direct knowledge of the matter, said.

"The expected recovery on owned planes and real estate is $300-400 million after repaying debt tied specifically to those assets," said one of the sources.

The sources said Jet currently has some four to six Boeing and Airbus aircraft, and some real estate assets in India, on which there are some outstanding dues.

The airline, less than a year ago, was operating a fleet of more than 120 planes that flew to dozens of domestic destinations and international hubs such as Singapore, London and Dubai.

Once India's biggest private carrier, Jet stopped flying in April after running out of cash, leaving thousands without jobs and pushing up air fares across the country. It was admitted to bankruptcy court in June after its lenders, led by State Bank of India, failed to agree on a revival plan.

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