Jet Airways Gets Two Suitors For Revival As Deadline For Second EoI Ends, Hinduja Group Opts Out

Jet Airways Gets Two Suitors For Revival As Deadline For Second EoI Ends, Hinduja Group Opts OutA Jet Airways plane (Representative Image) (Vijayananda Gupta/Hindustan Times via Getty Images)

As the deadline for submission of Expressions of Interest (EoIs) ended on Wednesday (15 January), South America-based Synergy Group and Delhi-based Prudent ARC have submitted EoIs for the revival of ailing Jet Airways, reports Business Standard.

Hinduja group also explored the possibility of investing in the airline but backed out later as it found no value, sources were cited in the report as saying. Besides, a Dubai-based fund too had shown interest in investing in the grounded airline, but did not submit a offer.

According to the report, this was the second time that the lenders to the airline, which shut operations on 17 April last year, had called for EoIs. Earlier, the first round of bidding did not result in any resolution plan for the revival of the Jet Airways. The deadline was extended time and again to give ample time to prospective suitors.

Stating that slots at London’s Heathrow airport are critical to the airline’s operations, Synergy Group, one of the suitors, has said that it will decided on participating in the resolution if it gets clarity.

Further, the group has also put forth other riders to revive the airline. It wants to create a new company with its assets, employees and operating permit without all the liabilities.

The group, as of now, has not found an Indian partner willing to take majority control of the airline. The norms set by Central government caps foreign investment in the airline at 49 per cent.

As per the report, Jet’s prospective owner would get the airline’s brand, 49.9 per cent stake in its loyalty business, and up to 12 planes, but uncertainty about the airport slots and absence of a strong Indian investor are obstacles to the carrier’s revival.

The airline had around 20-30 per cent of available slots at Delhi and Mumbai airports and overseas traffic rights, but these have been allocated temporarily to other carriers

The civil aviation ministry, on its part, has said that it will decide on returning domestic slots to Jet on submission of a concrete business plan.