JET OPS REMAIN HIT, PILOTS PLAN A STRIKE OVER UNPAID SALARIES
INITIAL BIDS At least four bidders are likely to be shortlisted by early this week
MUMBAI: Over 1,100 Jet Airways pilots, who threatened to stop flying from Monday as they have not been paid salaries for the past three months, said they have deferred the decision as they wanted to give the debt-ridden airline “a chance of survival”. The move comes the same day as the airline suspended operations in SAARC and ASEAN regions indefinitely, besides extending suspension of its services to Toronto and Paris from Chennai and back.
The National Aviator’s Guild , which these pilots are a part of, said that they reconsidered their strike in view of a “critical meeting” planned on Monday between the airline management and the SBI, which is leading the consortium of the airline’s lenders.
“It has come to our notice that there is a critical meeting planned tomorrow morning with the airline management and SBI. In light of the meeting, the members have requested, through their team leaders, that the call of ‘No Pay No Work’ be deferred to give the airline a chance of survival,” a statement released by NAG said.
Jet has been reeling under a severe liquidity crisis, which has compelled it to ground jets for which leases have gone unpaid. On Friday (April 12), Jet had extended suspension of its international flights till Monday (April 15). The airline is currently operating only seven aircraft (one Boeing 737 and six ATRs) across the country.
MUMBAI: Lenders to Jet Airways (India) Ltd are unlikely to consider an initial bid from Naresh Goyal, the airline’s ousted founder, to regain control of the debt-laden carrier, two people directly familiar with the bidding process said.
Goyal was allowed to submit an expression of interest (EoI) on the condition that he bid as part of a consortium with other investors where he would hold a minority stake, the people cited above said, requesting anonymity. Those conditions have not been met in his bid submitted on Friday. A final decision on the bid would be conveyed to Goyal after considering legal opinion, they said.
In March, Goyal was forced to cede control of the airline he had founded more than two decades ago, after Jet Airways, saddled with over $1 billion in debt, defaulted on payments to banks and aircraft lessors. Jet Airways’ fleet has now dwindled to 14, a fraction of the 119 aircraft it flew before its first default on December 31. The airline has stopped international flights till Monday afternoon and significantly curtailed its domestic operations.
Creditors to Jet Airways had extended by two days a deadline for potential buyers to bid for as much as 75% of the carrier to Friday evening.
At least four bidders are likely to be shortlisted by early this week, according to the two people cited before. Current shareholder Abu Dhabi-based Etihad Airways PJSC and two other international airlines are among companies that had submitted
RAJSHREE PATHY QUIT JET AS INDEPENDENT DIRECTOR, EFFECTIVE APRIL 13, CITING TIME CONSTRAINTS AND OTHER COMMITMENTS
initial bids, they said.
Meanwhile, the struggling carrier on Sunday said its independent director Rajshree Pathy has quit the company, effective April 13, citing time constraints and other commitments.
“This is to inform you that Rajshree Pathy has submitted her resignation as an independent director of the company with effect from April 13, owing to time constraints and on account of her other current commitments,” Jet Airways said in an exchange filing.
Mint reported on April 11 that India’s quasi-sovereign wealth fund National Investment and Infrastructure Fund Ltd, Etihad Airways and two other financial investors had shown interest.
“The majority view is that Naresh Goyal is ineligible to bid, but lenders are seeking legal opinion before declaring the names of the qualified bidders,” said one of the people cited earlier.
Strategic bidders looking to invest in Jet Airways should have a minimum net worth of ₹1,000 crore or at least three years of experience in the aviation sector. For financial investors, the qualifying conditions are minimum assets under management of ₹2,000 crore or at least₹1,000 crore in committed funds for investment in Indian firms or assets, according to the EoI document that was made available to prospective bidders and reviewed by Mint.
“Once the qualified bidders are finalized, they will be given access to Jet Airways’ data room,” said the second person. “The final bids are expected to come by May 9, though the date may change depending on how the process goes.”
“Since, this is an open bidding (to the public), I am not sure if SBI (State Bank of India) can disallow Naresh Goyal from bidding,” said Mark Martin, chief executive of aviation consultancy firm Martin Consulting. “As to why he wants to bid for Jet Airways, we all know that he’s still very emotionally attached to the airline he founded over two and half decades ago.”
Goyal was not available for comment on the landline number listed in his latest address to Jet Airways staff. Emails sent to his official Jet Airways account bounced back.