International Olympic Committee again stops fuel supply, Jet secures other sources

Kenny Grant
April 13, 2019

Lenders of the debt-ridden Jet Airways on Wednesday tweaked the terms for stake sale in the airline and also extended the submission deadline for "expression of interest" bids from prospective buyers.

On March 25, Jet Airways Chairman Naresh Goyal stepped down, paving way for lenders to bail out the financially troubled airline he set up 25 years ago. However, minutes before the end of the deadline, it was extended.

It is understood that Etihad Airways, which was keen to participate in the bidding process, had sought more clarification and time to secure board approval, resulting in the extension of the deadline, according to people in the know of the development.

Air Canada, AirAsia and Vistara are some of the airlines which have made enquiries on the bidding process for taking over Jet Airways. The initial bid document offers between 31.2% and 75% of shares to the new owner of Jet.

The binding bids have to be submitted by April 30, 2019. Shares of Jet Airways were down 1.6% at Rs 263 by close of Wednesday's trade on the BSE.

However, the airline said that other fuel retailers continue to supply its aircraft.

The Telegraph
The Telegraph

To be certain that genuine parties are bidding, SBI Caps, the merchant banker undertaking the task, said all members of the consortium have to provide their details, which then have to be certified by their managing director or chief executive director.

The airline now operates 26 aircraft, including Airbus A330s, Boeing 777s, 737-800 and ATRs, to various destinations like London, Toronto, Singapore, Amsterdam, Paris, Bangkok and domestic sectors like Mumbai-Delhi, among others.

Jet has been operating around 100 flights only with 26 planes as most of the fleet is grounded due to non-payment of lessors' rentals.

Meanwhile, the airline is struggling to carry out day-to-day operations as it faces an acute cash crunch to pay for fuel, vendors and lessors.

While delaying salaries of its entire 16,000 workforce for the third time since last September, on April 3, the airline had informed employees of providing an update on April 9.

Apart from employees, aircraft lessors are also upset with the current financial situation with some of them requesting the Directorate General of Civil Aviation (DGCA) to de-register their aircraft leased to the company.

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