The fight is not over for Indian passenger airline Jet Airways, as it once again extends its Expression of Interest (EOI) deadline.
At Simple Flying, we’ve been covering Jet Airways’ slow slide into bankruptcy for over a year. After a failed emergency funding bid, the airline still lies $3bn in debt with just 12 aircraft left in its fleet.
Flight Global has now reported that the final date for EOI submissions will be on 31st August, leaving just three days for Jet Airways to garner the support and funding it so desperately needs.
Deadline extension meets deadline extension
The deadline for EOIs for Jet Airways was meant to end on 10th August which was already an extension on the previous deadline. This would have seen offers submitted by 3rd August and a finalized list of applicants by the 14th August.
On the 3rd August, the Resolution Professional for Jet Airways released the following statement about the extension:
The proposed extension is to ensure the objectives of the IBC are achieved and we are able to maximise the value of the assets of the corporate debtor and achieve a better outcome for all stakeholders in this fast-track process.
With the new deadline set for the end of this month, Jet Airways will use a fast-track system of India’s bankruptcy code as a resolution will overstep the 90-day timeframe normally given.
If the airline receives any offers by the 31st of this month, a provisional list will need to be drawn up by the 3rd September. After that, the list will continue to be whittled down until the final list is created by 12th September at the latest. Resolutions plans will then need to be drafted and submitted by the 14th October and they will then be approved within two weeks.
Who is interested?
The insolvency is being handled by Ashish Chhawchharia of Grant Thornton India. Chhawchharia is responsible for overseeing offers in the Jet Airways crisis and made the move to extend the EOI deadline after unsuitable offers.
According to the insolvency proceedings on Jet’s website, Chhawchharia is holding out for an investor with a net worth of one thousand crore Indian rupees in the immediately preceding financial year.
On 13th August, Simple Flying reported that three investors had given the airline hope by filing their Expression of Interest. They included Volcan Investments, who quickly backed out, as well as Avantulo and Treasury of the Creator RA. More recently, Synergy Group, headquartered in Brazil, has placed its EOI joining Treasury of the Creator RA in an attempt to save Jet Airways.
Even if an investor is found for the airline, Flight Global suggests that it is unlikely that Jet Airways will be able to resume its previous routes before the northern winter scheduling season begins. Other aircraft have already been profiting from Jet Airways’ demise with the like of KLM securing its slots for Amsterdam’s Schiphol airport.
Jet Airways’ meager assets
At one time, Jet Airways had over 120 aircraft flying within its fleet but now it has just 12. According to Air Fleets, Jet Airways had 14 Boeing 737s in operation before services ceased on 17th April this year. It now has three and this aircraft is the only model that the airline owns outright. Jet’s remaining nine aircraft are all on lease and include three Airbus A330s and six Boeing 777s.
At the time of its collapse, Jet Airways had four-200 series and four -300 series A330s in its fleet. Over its lifetime Jet Airways has also owned 26 Boeing 777s but at the time of its bankruptcy, it had 10 Boeing 777s in operation. The remaining 16 were sold prior to 2015 to airlines, including Etihad and Thai Airways.