Sunday, June 30, 2019

India's Vistara, SpiceJet said to mull bid for Jet Airways

Indian private airlines such as the Tata group-majority owned Vistara and SpiceJet may make a bid for embattled Jet Airways, according to aviation industry sources.

Jet Airways has been referred to the National Company Law Tribunal (NCLT) for resolution under India’s Insolvency and Bankruptcy Code (IBC).

The NCLT-appointed Interim Resolution Professional (IRP) is expected to begin searching for buyers for Jet next month, following the July 4 deadline set for receiving claims of dues by all its creditors.

According to sources, Vistara and SpiceJet are likely to bid, while on Friday, the London-based Adi Group and the Jet Airways Employees Union said they would bid for a 75 percent stake in Jet.

“We have already informed NCLT through the IRP about forming a consortium with [the] Jet Employees Union,” Adi Group chairman Sanjay Vishwanath told reporters in New Delhi.

Abu Dhabi-based Etihad Airways holds a 24 percent stake in Jet.
“The significant number of flying rights, especially in the international sector, and airport parking slots of Jet Airways could elicit interest from domestic aviation players such as the Tata Group and SpiceJet to make a bid for Jet Airwas,” Dhiraj Mathur, an aviation industry expert and former executive director of PwC India told Arabian Business.

He added, however, that prospective suitors for Jet are expected are expected to offer only a fraction of its current market valuation or liabilities should they make a bid.

“SpiceJet has already got about 43 percent of Jet’s airport parking slots, besides a considerable number of airline seats from Jet’s quota, both within and outside India, without investing a single penny in the airline,” Mathur added. “So why should it offer any significant valuation to pocket the remaining flights rights?”
30/06/19 Arabain Business
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