- Jet Airways has two shortlisted bids are by South-America based Synergy Group and Russian Fund Treasury RA Creator. Now, Synergy Group and RA Creator will be invited to submit the resolution proposals.
- In the same time, another Airline in India has been looking at the crisis for some time now and the government is planning to divest from it. Civil Aviation Minister Hardeep Singh Puri recently said The government has been looking for the privatization of Air India for long and the government is clear about its plan.
Founded by Naresh Goyal, Jet Airways could be inching towards the resolution process as they have shortlisted two suitors to bid for the now non-functional airline. The resolution saw three application among which 2 were selected and they will be invited to submit the resolution proposals. The shortlisted bids are by South-America based Synergy Group and Russian Fund Treasury RA Creator. Now, Synergy Group and RA Creator will be invited to submit the resolution proposals.
Synergy Group already has a major stake in the Columbia based airline Avianca and is interested in investing up to Rs 3,000 crore in the now-defunct Jet Airways. Although, the investment is conditional and will be taken ahead only if lenders of the airline take a large debt haircut, said Antonio Guizzetti one of the advisors to Synergy Aerospace. It is expected that the State Bank of India (SBI) and German Efromovich, Owner of Synergy Group will meet within next week to discuss a business plan.
In the same time, another Airline in India has been looking at the crisis for some time now and the government is planning to divest from it. Civil Aviation Minister Hardeep Singh Puri recently said The government has been looking for the privatization of Air India for long and the government is clear about its plan. He also said that it’s not the government’s business to run airlines and hence Maharaja will be privatized.
Recently, In June Jet Airways Employee Union and UK-based Adi Group announced to jointly bid for acquiring a 75 percent stake in the airline which is facing bankruptcy proceedings.
Jet Airways was grounded on 17th April 2019 and it owes over Rs. 8,200 crore due to financial creditors alone. As per the website, creditors have filed claims worth over Rs 30,000 crore. The airline was dragged to NCLT after months of struggling to get it functional and was admitted to the tribunal on June 20. Meanwhile, the slots of the beleaguered airline have been assigned to other airlines.
The fall of Jet Airways has favored Spicejet and Indigo who have responded by taking most of its slots at all the major airports. Interesting and worrying times lie ahead in the Indian aviation industry with the fall of one of its biggest players.
