Wednesday, March 11, 2020

Jet Airways May Now Finally Be Declared Bankrupt

This week could mark the final nail in the coffin for Jet Airways. None of the bidders who issued an Express of Interest (EoI) submitted a resolution plan, as required. As of Monday, there are no buyers for Jet Airways.

Jet Airways has been in a state of limbo since it suspended operations in April of last year. The suspension triggered the airline’s creditors to seek offers from Etihad Airways (who had bought 24% of the airline in 2013) and Hinduja Group, who previously expressed interest.

Neither of the groups showed any interest in bailing out the carrier, sending the airline into bankruptcy proceedings in June. Since July, the airline has been inviting Expression of Interests (EoI) from investors. While many groups have shown interest, few actually submitted bids, and none offered the required resolution plan.

Jet Airways’ has seen most of its fleet repossessed by lessors, including its vast fleet of narrowbody 737s. Lessors were eager to lease out Jet’s fleet in light of demand due to the 737 MAX grounding, with carriers like Vistara snapping them up (as seen above by the belly paint). As of this year, the carrier only had 12 aircraft remaining, consisting mainly of its widebody fleet of 777s and A330s and just three 737s.
By all regards, Jet Airways was one of India’s most respected carriers. As one of two carriers flying long-haul international routes from India, the other being Air India, Jet had made a name for itself with its service. The airline was the preferred choice for business travelers with its vast route network and rewarding JetPrivilige frequent-flier program. The airline became the first to attract foreign investment in itself, with its deal with Etihad Airways in 2013.
In the end, Jet’s balance sheet brought it down. The early 2000s saw the establishment of low-cost carriers like IndiGo, SpiceJet, and GoAir. Jet Airways quickly saw its dominant position threatened by the new upstarts. It purchased Air Sahara and renamed to Jet Konnect, in order to compete with the low-cost carriers.
11/03/20 Syd Sharma/Simple Flying
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