Aviation Regulator Allows Lessors To Take Back 7 Jet Airways Aircraft

Jet Airways sale Nobody interested in buying lenders stake on Day 1

Jet Airways sale Nobody interested in buying lenders stake on Day 1

Jet Airways pilots along with engineers and senior executives have not been paid for the last three months amid cash-drought in the airline that saw an ownership change last month with banks taking majority shares.

With the first two days attracting no suitors to the table, all eyes are on Jet Airways as the deadline to submit an Expression of Interest expires at 6 pm on April 10, 2019. "Accordingly, to allow better participation, the domestic lenders have agreed for extension of the timeline for submission of EoI".

The fate of troubled airline Jet Airways remains uncertain as the stake-sale process draws a lackluster response.

The lenders have offered a stake from 31.2 to 75 per cent of the company on a fully diluted basis.

Indian Oil Corp, for the second time, halted supply of fuel to Jet for a few hours on Wednesday over non-payment of dues, a spokesman for the refiner said.

As airfares continue to rise, Indian aviation watchdog DGCA has "requested" the airlines to bring the "immediate and medium-term plan" on Wednesday to augment the number of flights, which will be over and above the flights approved for the summer schedule, government officials said on Tuesday.

"Bidders are required to provide the solvency certificate ... on their letterhead and certified by managing director/full time director/CEO of the bidder or a person holding an equivalent position in the bidder", SBI Caps said in a separate notice. The airline is now operating only 26 aircraft as several planes from its earlier fleet size of around 120 remain grounded for non-payment of lease rentals.

To add to the airline's woes, aviation regulator Directorate General of Civil Aviation announced on Wednesday it de-registered seven Boeing 737-800 aircraft of Jet. The lessor can then take the plane out of the country and lease it to any other airline company.

The airline is now flying 26 of its 119 aircraft and deferred salary payments to all its employees in March.

The banks have appointed SBI Capital Markets to assist them in the formulation of a resolution plan, which includes undertaking a competitive bidding process.

Earlier, SBI chairman Rajnish Kumar had said that lenders did not want to initiate insolvency proceedings against Jet Airways.