MIAMI – During the fourth round of bidding since its collapse, Jet Airways (9W) has shortlisted two bidders. A consortium of three companies and a partnership between two businesses.
Flight Simulation Technique Center, Big Charter Ltd., and Imperial Capital Investments LLC are the first group. Kalrock Capital and Murari Lal Jalan form the other interested party.
Bidders Change Jet Airways’ Collapse Picture
Since April 2019, 9W has seen cloudy skies. Once it burned out its funds and collapsed, there was no clarity on when it would return to fly.
Nonetheless, the picture changed this month. After three failed attempts, the Indian company received 12 purchase proposals.
Then, it reduced the potential bidders to four. These were a two-business partnership, a consortium of three companies, Siva Rasiah and Alpha Airways (H7).
Finally, 9W shortlisted Kalrock Capital and Murari Lal Jalan at one hand. It also selected Flight Simulation Technique Center, Big Charter Ltd, and Imperial Capital Investments LLC as the other proposal.
Consortium and Partnership Plans
Being led by Imperial Capital, the consortium has already unveiled its rescue plan.
In an interview, Biraja Jena, chairman of Imperial Capital said that it offered various short term options to the carrier. Besides the plan, BusinessToday reported that the consortium already secured US$100m for the restructuration.
However, Jena added that 9W had a claim on the realization of assets and group investments.
Therefore, the plan is to sum immediately realizable assets for payment and phased induction of employees. In addition, assets also include stock options.
Regarding fleet operations, the joint company would start operating mainly domestic flights with eight aircraft.
According to Jena, if the group wins the bidding, 9W will return to service once they finalize the acquisition.
In contrast, the partnership has yet to present its offer. According to reports, it expects to restart the airline with a fleet of 27 aircraft.
Jet Airways Final Decision
Both offers are still being discussed. But the winning bidding has to meet certain insolvency laws and finalize other negotiations for the carrier to fly back this year.
Thus, the final decision in August hangs on the shoulders of Ashish Chhawchharia, who leads 9W’s restructuring process, and the viability of proposals itself at the short-term.