Etihad completes due diligence for Jet Airways
May place joint bid with NIIF and TPG Capital
Etihad Airways has completed the due-diligence process ahead of placing its financial bid for acquiring Jet Airways. Two other potential bidders — TPG Capital and the National Investment and Infrastructure Fund (NIIF) — have also begun the due diligence and may put in a joint bid with Etihad.
SBI Caps had opened the window on Monday for the potential bidders to vet the books of Jet Airways. The lenders have fixed May 10 as the last date for submitting binding financial bids.
“Jet Airways has provided a data room where all the necessary documents, information and data related to the airline’s assets, debt, costs, governance information and information on employee strength among other things have been opened up for the bidders,” said a source close to the lenders, adding that all the four shortlisted players continue to be interested in acquiring a stake in the airline.
“As far as we are concerned, the bidding process is going on and none of the shortlisted entities has told us that it is withdrawing,” said the source.
This comes even as the Ministry of Civil Aviation sought to assuage concerns by stating that Jet Airways’ airport slots will be given to other airlines temporarily for three months and they will be returned to Jet once the airline resumes operations.
Meanwhile, the National Aviator’s Guild (NAG), the pilot body of Jet Airways, has decided to use the provisions of the Industrial Dispute Act to pursue its demand for payment of salary dues. This could be a precursor to filing a plea with the NCLT. On Tuesday, NAG held an open house in Mumbai to discuss the same.
Said an NAG committee member: “So far, we have followed all the procedures laid down under the Act. We have escalated the letter that was written to the Labour Ministry. The next step will be going to the NCLT.”