Jet Airways Receives Two Expressions Of Interest But Expects More

As the final deadline looms for Expressions of Interest (EoI) in Jet Airways, the grounded airline has received two offers. A group that had originally expressed its interest has renewed that vow along with another non-aviation company. But Jet Airways doesn’t think the interest will stop there.

Jet Airways aircraft
Jet Airways could be seen in our skies again as EOIs come in from two bidders. Photo: Rick Schlamp via Wikimedia Commons

The looming deadline brings EOIs

There are just six days left until the extended deadline for submitting EOIs for Jet Airways is finalized. And with such a short window, there have been a number of organizations interested in putting their money to Jet Airways’ aid.

One of the groups which has submitted a bid for the airline is South American Synergy Group. The group had already put in a bid before the deadline was extended, although it spent a long time in deliberation over resolution plans. Now Synergy Group has put in a fresh bid to secure itself in the contest for ownership of the defunct Indian airline.

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However, whilst this bid in itself is promising, there is more for Jet Airways to get excited about. It’s also received another bid from a party outside of the aviation sector. The identity of the discreet bid is not publicly known. Instead, we are told that the EOI has come from a Dubai-based fund. This information comes from those close to the resolution.

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Passengers reacting at Jet Airwasy counter
Despite the EOI proceedings taking a turn for the worse, Jet Airways now seems to be increasing in confidence. Photo: Getty Images

Despite the length of these EOI proceedings, everything seems to now be coming together for Jet Airways. So much so that it now is confident in receiving even more bids. The Resolution Professional for Jet Airways, Mr. Ashish Chhawchharia, believes that two other groups may present their official bids within the next few days.

Who are the other potential bidders?

The Hinduja Group is one such candidate expected to submit an EOI before the Jet Airways deadline on 15th January 2020. Hinduja had previously shown interest in a Jet Airways investment early but was thrown off by the lack of protection from the National Company Law Tribunal which could have lead to further problems down the line. Caution erred it to take a step back.

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However, these issues seem to be close to resolution leaving Mr. Chhawchharia with the belief that the group will soon make its move. The Hinduja Group already has fingers in many pies within a variety of sectors, including automotive, IT, oil, healthcare, and real estate. This demonstrates its strength as a company but, more than that, its ability is backed by the government. It approached the group in the first place.

According to Live Mint, the Co-Chairman at the Hinduja Group said:

“The reason we took interest was because government authorities approached us to help in survival of Jet. Even the banks approached us. With our good relations and contacts in the Middle East and Gulf, we took the initiative to support and help.”

Turbocharging Jet Airways’ future

Yet there is another potential contender hoping to make it on the final list of eligible bidders and that is Turbo Aviation. Turbo Aviation is a charter airline based in Hyderabad in India and initially expressed interest in Jet Airways in mid-December 2019. But no advancements have yet been made on its bid.

Turbo Aviation has plans to launch a low-cost airline of its own at some point in 2020 which shows that it has the funds, but will it have the commitment needed to help resurface Jet Airways?

Jet airways aircraft at airport behind barbed wire fence
Who will have the capacity to save Jet Airways? Photo: Getty Images

Whatever bids come through in the next few days, we’re still a long way off from seeing Jet Airways back in the skies. Once the bids have been entered, the final list will be drawn up. Then the rest of the proceedings can continue. Jet Airways owes over $1.2 billion to banks, lessors, and suppliers among other entities. Bidders in the race for Jet Airways will need to cancel out that debt as part of a deal.

Do you think Hinduja Group and Turbo Aviation will submit bids for Jet Airways? Let us know in the comments below.

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TheDude

So if I understand this correctly you have have to pay the $1.2 bn for the debt alone and then whatever the assets cost? I don’t see how that makes financial sense for anyone unless you could liquidate everything and make money i.e. Gordon from wall street.

Jason Unsworth

Yes they will bid and so will the original bidders Atmosphere Airlines UK who are bringing in investors and new business plans to make the airline profitable again. All bidders are requesting COC to cut the debts or put them on hold for a number of years, as well as requesting EX Chairman Naresh Goyal to infuse the funds he still owes to Jet Airways.