Jet Airways (JAI, Mumbai Int’l) clarified in a stock exchange filing on October 8 that a consortium consisting of London-based asset management firm Kalrock Capital and Murari Lal Jalan, an investor based in the United Arab Emirates, had not won a round of bidding for the bankrupt carrier.
The insolvency resolution professional at Jet Airways, which ceased operations saddled with debts in April 2019, said in the filing that the committee of creditors had not concluded e-voting on the final proposals submitted by two shortlisted bidders, whose proposals will be put to vote on October 16.
The resolution professional – creditor-appointed Ashish Chhawchharia, who leads the restructuring practice for Grant Thornton in India – said in the filing that the Kalrock consortium had assured him it had not made any statements claiming to have won the process.
The consortium is pitched against a rival bid from a consortium combining start-up regional carrier FlyBig (Indore), New Delhi’s Flight Simulation Technique Centre, and Abu Dhabi’s Imperial Capital Investments.
The insolvency process had been expected to conclude in June 2020, but the deadline was extended to August 21 due to the ongoing pandemic and then extended again by Chhawchharia for an unspecified period.
On October 8, India’s Economic Times had reported that Igor Starha, managing partner at Kalrock, had told it the previous evening by phone: “Our consortium was chosen by the committee of creditors in a meeting that concluded this evening.”
The Economic Times also claimed, citing an unnamed source who had allegedly viewed the bids, that the Kalrock consortium planned to inject INR3.8 billion rupees (USD52 million) into Jet Airways in the first two years and another INR5.8 billion (USD79 million) in years three to five.
It would also put up collateral amounting to INR2.5 billion (USD34 million) as security and promised cash to creditors from year three onwards, irrespective of what happens to the airline, the source allegedly said.
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07.10.2020 – 08:59 UTC
India’s Ministry of Civil Aviation (MoCA) has awarded rights for 76 routes under the fourth round of the Regional Connectivity Scheme (Ude Desh Ka Aam Nagrik – UDAN/RCS) with start-ups Air Taxi (India) (Delhi Int’l) and FlyBig (Indore) emerging as major regional operators, CNBC-TV18 has reported.
According to the report, Air Taxi has been awarded rights for 22 routes, including services from Hisar, Kanpur, Chitrakoot, and Shravasti. In turn, FlyBig has secured subsidies for 16 routes, including from Guwahati, Pasighat, Tezu, and Rupsi.
The MoCA has yet to announce the list of carriers selected in the fourth round of UDAN bidding. In late August, the authorities announced the list of 78 routes pre-approved for contracts. According to CNBC-TV18, besides Air Taxi and FlyBig, Alliance Air (India), IndiGo Airlines, SpiceJet, TruJet, and Ventura AirConnect have also scooped rights.
Air Taxi has been in the works since at least 2014. In early 2019, it won the rights to operate the Kulu-…
23.09.2020 – 05:07 UTC
Original plans for an April take-off were delayed by COVID-19, but Flybig Chief Executive Officer Srinivas Rao told Moneycontrol: “The process to get an Air Operator’s Certificate is in the final document stage. The DGCA (Directorate General of Civil Aviation), the aviation regulator, and the Civil Aviation Ministry, have been helpful. We hope to start operations in October.”
Based in Indore (west-central India), FlyBig plans to start operations with two leased ATR72-500s, expanding to a fleet of 20 aircraft, said Rao, a former pilot, flight instructor at Etihad Airways (EY, Abu Dhabi Int’l), and former senior manager at Kingfisher Airlines (IT, Mumbai Int’l).
He said the airline’s first ATR72-500 would be delivered from Australia in September. According to the ch-aviation fleets ownership module, the 65-seater aircraft currently registered as VN-B214 is to be registered as VT-FBB (msn 688), an 18.35-year-old ex-VASCO –…
11.09.2020 – 05:07 UTC
A debt restructuring request emanating from Air Seychelles (HM, Mahé) has been rejected by bondholders of Etihad Aviation Group‘s Netherlands-based special purpose vehicle Etihad Aviation Partners II, after the carrier defaulted on a payment due on August 24, Bloomberg Law reported.
The bondholder group rejected an offer from Air Seychelles to partially repay its loan to EA Partners II, consisting of an aggregate prepayment of USD15 million and a principal extension of USD5 million backed by a government guarantee.
EA Partners II, one of two Dutch special purpose vehicles belonging to Etihad Airways, revealed on July 10 that the Seychellois airline had sent it a letter dated July 3 “stating its intention to engage in discussions” on its obligations to its debts relating to an agreement signed in May 2016.
The debt obligation agreement was the second of two…
31.08.2020 – 10:43 UTC
FlyBig (Indore) founder and pilot-turned-entrepreneur Sanjay Mandavia is planning to pair the start-up regional carrier with a revived Jet Airways (JAI, Mumbai Int’l) if his bid for the latter is successful, Moneycontrol has reported.
Mandavia is bidding for Jets’ remaining assets in a consortium with New Delhi’s Flight Simulation Technique Centre and Abu Dhabi’s Imperial Capital Investments. He plans to revive the defunct carrier on trunk routes, while FlyBig would feed into the network from smaller markets, including many government-subsidised UDAN routes.
The deadline for the selection of investors for Jet Airways was recently postponed beyond August 21 due to the ongoing pandemic.
However, COVID-19 is not throwing FlyBig off its course. The regional specialist hopes to conclude its certification with India’s Directorate General of Civil Aviation (DGCA) in time for a planned October 2020 launch, Chief Executive Srinivas Rao said.