Potential investors in Jet Airways (JAI, Mumbai International) are worried about the loss of value of the carrier as rival airlines scoop aircraft and staff, and the government reallocates slots at congested gateways, The Economic Times has reported.
According to sources, all three potential private investors - Etihad Airways, Indigo Partners, and TPG Capital - are now evaluating whether to submit a binding bid for up to a 75% stake in the grounded carrier by the May 10 deadline.
Business Today has reported that, as it stands, Etihad, TPG Capital, and the government-backed National Investment and Infrastructure Fund (NIIF) would now be considering a joint bid, while Indigo Partners is no longer in the game. The latter investor previously drew up a plan to inject USD250 million into Jet Airways and convert it into a low-cost carrier.
The Indian Express further reported that Mukesh Ambani, owner of conglomerate Reliance Industries, was another potential partner for Etihad Airways. Separately, Ambani also floated the idea of bailing out Air India (AI, Delhi International), which is also struggling to meet its immediate financial obligations.
As reported earlier, the potential investors also want banks to forego up to 80% of Jet Airways' mountain of debt, which currently totals INR85 billion rupees (USD1.2 billion).
The Ministry of Civil Aviation confirmed that it decided to reallocate ex-Jet Airways slots at Mumbai International and Delhi International to other airlines. Previous reports suggested that as much as 280 and 140 slots, respectively, could be made available. The ministry underlined that slots will be reallocated only to airlines who can immediately start using them and on a temporary basis.
"The historic rights of Jet Airways, as per the provisions of the extant MoCA guidelines for slot allocation, will be protected. These slots would be made available to Jet Airways as and when they revive their operations," the ministry said.
In terms of aircraft, SpiceJet already announced it will take over twenty-two B737-800s previously operated by Jet Airways, while Air India has applied to take over five B777-300(ER)s.
