Mumbai: Rival airlines are targeting various assets of grounded Jet Airways, including airport slots, highly-trained employees and aircraft, making the lenders’ task of reviving the debt-laden carrier by finding a suitable buyer an Herculean task.
Two low-cost airlines are aggressively hiring employees of the financially-crippled airline at much lower salaries and inducting aircraft to fill the vacuum created by Jet Airways, which was a significant player in the international and domestic markets till recently.
Even full-service carriers such as Vistara and Air India, which are saddled with more debt than Jet, are taking the opportunity to fill the void and enhance their market share.
With regard to Air India’s interest in leasing Jet’s grounded Boeing 777 aircraft, there is a debate already. Jet Airways owns 16 planes, including 10 Boeing 777-300 ER, that were financed by the U.S. Exim Bank. According to airline executives, Exim Bank has the first lien (first right to recoup its investment) on these planes. In which case, there is query on how SBI can lease out the aircraft when the bidding process was underway.
19/04/19 LaLatendu Mishra/The Hindu
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Two low-cost airlines are aggressively hiring employees of the financially-crippled airline at much lower salaries and inducting aircraft to fill the vacuum created by Jet Airways, which was a significant player in the international and domestic markets till recently.
Even full-service carriers such as Vistara and Air India, which are saddled with more debt than Jet, are taking the opportunity to fill the void and enhance their market share.
With regard to Air India’s interest in leasing Jet’s grounded Boeing 777 aircraft, there is a debate already. Jet Airways owns 16 planes, including 10 Boeing 777-300 ER, that were financed by the U.S. Exim Bank. According to airline executives, Exim Bank has the first lien (first right to recoup its investment) on these planes. In which case, there is query on how SBI can lease out the aircraft when the bidding process was underway.
19/04/19 LaLatendu Mishra/The Hindu
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