Friday, May 29, 2020

Reviving Jet Airways: Long list of suitors surprises. But the big question remains

In Jet Airways' long list of suitors, of nearly a dozen, are a few familiar names, a couple of surprising ones and some unknown. But all are dogged by the same question in this fourth attempt to revive the airline - will anyone reach the finishing line?

The airline's lenders too are in a wait-and-watch mode, before pinning their hopes on the latest suitors.

The airline had suspended operations in April 2019, after running out of money to run operations.

Some of the new names that Moneycontrol could verify till now include - Hyderabad's Turbo Aviation, which specialises in charter, ground handling and MRO services; and entrepreneur Sanjay Mandavia of FSTC, who had planned to start a new airline in India, this year.
And yes, there is an airline!
Alpha Airways, which advisory firm CAPA says is based in Kyrgyzstan. A Google search doesn't throw up any website.
Three suitors have made a comeback. One is AdiGro Aviation, the London-based group headed by Sanjay Viswanathan. After being in the race for a considerable amount of time, and teaming-up with another suitor - a consortium of Jet Airways employees - AdiGro had bowed out.
Confirming the re-interest, Viswanathan, who is the Chairman of AdiGro, told Moneycontrol: "AdiGro is happy to work collaboratively with Resolution Professional, Committee of Creditors and Ministry of Civil Aviation to revive it, if this happens. It's in this spirit that we submitted our Prelim Resolution Plan."
Interestingly, the consortium of Jet Airways employees has also made a comeback.
The third one is Atmosphere Intercontinental Airlines, led by Jason Unsworth, the British entrepreneur whose offer last year to take control of Jet Airways had evoked surprise.
South America's Synergy Group, which is probably to have come closest to the finishing line since Jet Airways insolvency process began last year, continues to be in the race.
More new suitors

One of them is KALROCK Capital, a UK-based financial services firm which, among other things, specialises in 'special situations'.

Its Board Member Manoj Narender Madnani confirmed that KALROCK has submitted an EoI for Jet Airways.

"Jet is a premium brand and we would like to be part of the solution, this will bring jobs back in an essential sector," he told Moneycontrol.

Explaining the rationale behind the firm's interest, Madnani added, "Our investment thesis is predicated on our ability to marry efficient and sustainable technologies to the aviation sector and improve efficiencies.

"With the global supply chains looking at India, we believe that the Indian aviation market is poised to grow exponentially once international skies open."
29/05/20 Prince Mathews Thomas/Dinesh Unnikrishnan/
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