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Monday, 12 August, 2019, 11 : 30 AM [IST]

Lenders to Jet receive EoI from Anil Agarwal’s family trust, two other companies

Lenders to grounded Jet Airways (India) Ltd have received expressions of interest (EoI) from Anil Agarwal’s family trust, Panama-based fund Avantulo Group and a Russian firm, two people aware of the development said on the condition of anonymity. The identity of the Russian firm couldn’t be ascertained, reports Rhik Kundu in Mint.

“Volcan Investment, an investment company for Anil Agarwal, in an exploratory move, has sought an EoI for Jet Airways, to understand the business scenario for the company and the industry," the company said in a statement.

Etihad Airways PJSC, which owns a 24% stake in Jet Airways, is not among the bidders.

The EoIs are technically not bids, but they have helped lenders sense the level of interest in the airline. However, lenders are expecting these entities to put in bids, as the deadline was extended to accommodate EOIs from some of them.

Access to prime slots at key airports, a stake in a profitable frequent flyer programme and a few relatively old planes appear to be the only assets before potential bidders of grounded Jet Airways (India) Ltd.

“Jet’s only value at this point remains its slots at key airports like New Delhi and Mumbai, stake in its frequent flyer programme and a few old wide-bodies that it owns, though most of these planes are technically owned by the banks," said an executive of a rival domestic airline, who didn’t want to be named. Jet Airways, which was until a few months ago India’s second-largest airline, operated about 106 departure and arrival slots each daily at Mumbai. In New Delhi, it operated about 79 departure and arrival slots each daily.

Slots at the busy Mumbai and Delhi airports are considered highly valuable since they allow an airline to operate these trunk flights. Airlines submit their schedules to authorities before summer and winter seasons as per International Air Transport Association norms.

(Source: Mint)
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