Companies

Two entities stake claim to restart Jet Airways

Forum Gandhi Mumbai | Updated on July 21, 2020 Published on July 21, 2020

The resolution professional of Jet Airways has finally received resolution plans from two consortium to restart operations. The consortium of Flight Simulation Technique Centre Pvt Ltd, Big Charter Pvt Ltd, along with Imperial Capital Investments LLC, have submitted a resolution plan to restart Jet Airways with five single-aisle aircraft.

The other bid is from a consortium of financial advisory firm Kalrock Capital, along with Murari Lal Jalan, a UAE based entrepreneur. This consortium has proposed to start the airline with 27 wide-bodied aircraft. BusinessLine had reported on Monday that the two entities are likely to submit bids.

Both entities have asked for over 95 per cent haircut from banks.

Travel restrictions

Speaking to BusinessLine, Ashish Chhawchharia, the resolution professional, confirmed that he has recieved resolution plans from two entities. He added that both these resolution plans ran into several pages and were submitted via e-mail due to the travel restrictions because of the ongoing pandemic. He did not give out any further details.

Sanjay Mandavia, Founder of Flight Simulation Technique Centre FSTC, said: “Advised by Luthra & Luthra and Deloitte, our consortium is happy to confirm that we have submitted a resolution plan for Jet Airways. We are confident that our plans will come through. It is a win-win bid for the lenders, employees and, us, too.”

According to sources, if Mandavia’s resolution plan is accepted, the pilot-turned-entrepreneur plans to fly to domestic and mid-haul destinations in the near future. While Imperial will be a financial investor, Mandavia is likely to be at the forefront of the bid.

The resolution plan submitted by Kalrock is understood have the backing of the former top management of Jet Airways.

“Kalrock and team plan to start the operations with 27 aircraft. It has plans to fly domestic as well as international routes, especially Europe. The consortium is already in talks with both the latest Boeing and Airbus to scout for aircraft,” said a source.

The lenders are expected to meet in the coming week to decide among the two players.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on July 21, 2020
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.