Jet Airways pilot demand payment; Goyal bids for stake

victoria@aviationnews-online.com
By victoria@aviationnews-online.com April 15, 2019 12:10

Jet Airways pilot demand payment; Goyal bids for stake

Jet Airways pilots have called on the lenders’ consortium led by State Bank of India (SBI) to release Rs 1,500 crore promised to Jet Airways as part of the debt restructuring plan agreed last month. The pilots, represented by the National Aviator’s Guild, were planning on striking from today over protest of non-payment of salaries since December 2018, but instead have appealed to the banks and the prime minister to save the airline.

“We would like to appeal SBI to release Rs 1,500 crore funds for the airline to help it continue operations. We also appeal Prime Minister Narendra Modi to save 20,000 odd jobs at the airline,” said National Aviator’s Guild ( NAG) vice president Adim Valiani.

The airline is meeting with lenders today to decide whether to release the funds or shutter the airline, which is now reported to be operating only six ATRs and one 737 on domestic routes, and cancelled all international flights last week.

In a new twist, Jet Airways founder Naresh Goyal is reported by Indian media to have submitted an Expression of Interest as part of a consortium, backed by Delaware entity, Future Trend Capital, to purchase a stake in the failing airline – which has been offered at between 32.1% and 75%. Goyal’s resignation as chairman was a caveat of the restructuring deal with the SBI lenders consortium. Apparently, such a move is allowed since Jet Airways does not come under the Insolvency and Bankruptcy Code (IBC), which bans promoters from bidding for their defaulting companies.

Other bidders are rumoured to be Etihad Airways, which already owns 24% of Jet Airways, as well as TPG Capital and Indigo Partners.

victoria@aviationnews-online.com
By victoria@aviationnews-online.com April 15, 2019 12:10