Sunday, June 30, 2019

Buyers Await Aviation Regulator's Scrutiny Of Jet Airways' Flying License: Report

With prospective buyers lining up to take a shot at bagging Jet Airways cheap, its prime asset - the flying license - is under the aviation regulator's scrutiny that might derail the NCLT-backed resolution process.
Industry insiders privy to the development say that buyers are waiting for the final word from the regulator which is expected to be announced on July 16.

Even the bankers to the now grounded airline are nervous. A revoked Air Operator Certificate (AOC) will render lower-than-expected recovery from the airline which has an outstanding amount of over Rs. 8,000 crore.

A meagre return will be equivalent to bank's taking a massive haircut, somewhere in the tune of over 90 per cent.

However, since the NCLT (National Company Law Tribunal) has stated that matter of resolution at Jet Airways is considered to be of "national importance", the resolution professional is widely expected to request the aviation regulator to extend the AOC's validity.

At the same time, buyers have shown interest in the grounded airline.

Recently, London-based AdiGroup partnered with Jet Airways Employee Consortium partnered to bid for 75 per cent stake of Jet under the insolvency resolution process.
30/06/19 IANS/NDTV

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