A former Jet Airways Boeing 777-300ER has been sold in the Netherlands as part of the airline’s bankruptcy proceedings. The aircraft was seized by European creditors after Jet’s financial troubles and subsequently went into administration. With the aircraft sold (for quite a relatively small sum), proceedings against Jet Airways in the Netherlands are officially over.
According to Mint, Dutch administrators have sold a Jet Airways 777-300ER that was seized by creditors in April 2019. The plane was sold for just $9 million to IAGCAS 777, LLC as part of the bankruptcy proceedings. The sale allows for Jet Airways’ insolvency process to come to a close in the Netherlands and ensures creditors are paid their dues.
The aircraft, registration VT-JEW, has been sitting in Schiphol airport for over two years as its fate is decided. KLM had been interested in buying the aircraft and Jet’s slots at the airport, but the deal fell through in early 2020. This left the 77W stuck at the airport through the pandemic with little demand.
The aircraft has now gone to IAG Aero Group, according to Planespotters.net. The company bills itself as a commercial aircraft engine servicing firm, which means the 77W will likely be decommissioned and its two GE-90 engines removed. This would mark the end of the road of VT-JEW, which has seen no action in two years and would cost millions to make airworthy.
Creditors have also taken a hit on their payout from the sale due to the pandemic. Ch-aviation.com lists the current market value of the 777 at $38.9 million. However, with no buyers right now, the sellers have opted to take a 75% haircut on the maximum value.
The seizure of VT-JEW was one of the earliest signs that Jet Airways was heading to a certain collapse. The plane was seized at Schiphol Airport less than an hour before departing for Mumbai on 10th April. Just seven days later, Jet Airways suspended all operations and shut down due to bankruptcy.
VT-JEW was one of the six planes Jet repurchased from lessors in August 2020 as part of a $13mn bullet payment. The purchase means that any funds remaining after paying the two European creditors will go to Jet India.
While this 77W likely won’t be returning to the skies, the deal is good news for Jet Airways, which is planning a return.
Just as the seizure of VT-JEW marked the end of Jet Airways 1.0, the sale of the aircraft could mark the beginning of Jet Airways 2.0. According to CNBC, Jet Airways is planning to sell its other widebodies and lease a fresh narrowbody fleet in the coming months. With operations set to start in the first quarter of 2022, the airline’s revival is right around the corner.
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