New Delhi: Once the new owners of bankruptcy Jet Airways To revive what used to be the largest private airline in the South Asian nation before falling under a pile of debt, India is in talks with Boeing Company and Airbus SE to buy at least 100 narrow-body jets for the carrier’s fleet. Used to be.
The winning bidders in the state-run insolvency resolution process for Jet Airways – Dubai-based, Indian-origin businessman Murari Lal Jalan and Florian Fritsch, chairman of London-based financial advisor and alternative asset manager Colorrock Capital Management Ltd – – in the first three months of next year. Plans to start flights, Consortium representative Ankit Jalan said in an interview with Bloomberg News.
Murari Lal’s nephew Jalan said earlier this week that the group would invest around Rs 1,500 crore ($200 million) through equity and debt in the airline over the next six months, half a year earlier than originally planned. .
The potential revival of Jet Airways, which forced creditors to cut 95% of its hair, would be a first for any airline under India’s bankruptcy laws and would intensify competition in one of the world’s most cut-throat aviation markets.
Founded by ticketing agent-turned-entrepreneur Naresh Goyal after India ended a state monopoly on aviation in the early 1990s, Jet Airways became popular among fliers as an attractive alternative to Air India. It previously offered full-service flights to cities including London and Singapore. A group of low-cost airlines introduced cheap fares for no-frills services.
Jalan, 37, who is heading the consortium’s airline venture, told Jet Airways’ old offices outside New Delhi on Wednesday evening, “The response we saw on the return of the Jet Airways brand was an inspiration in itself.”
“That’s why Jet is coming back; To serve the loyal fan base, to serve the people who miss Jett.”
Shares of the airline rose 5.6 per cent in Mumbai on Thursday, their biggest jump in more than three months.
Jet Airways – which had about 21,000 creditors seeking claims worth about $6 billion under the bankruptcy process – is re-entering a notoriously difficult market.
Kingfisher Airlines, founded by beer tycoon Vijay Mallya, ceased operations in 2012 after failing to clear its dues to banks, employees, lessors and airports.
SpiceJet collapsed nearly two years later before its founders regained control and returned to revive the company. Singapore Airlines and AirAsia Group Bhd have also set up local affiliates, but they are not making any money.
fleet plan
Jet Airways now has a fleet of 11 aircraft, including Boeing 737 and 777, as well as Airbus A330 jets. But those planes are mostly old and need to be sold and replaced with newer, more fuel-efficient ones, Jalan said.
Deals for the most popular model, the Boeing 737 MAX jet, could cost more than $12 billion, although discounts are common in large orders.
Jalan said options for the aircraft deal include both outright purchase and lease. While Airbus is considering potentially expedited delivery of its most popular A320neo jets, which have already been sold out for several years, Boeing could potentially revisit the old 225-aircraft order for 737 MAX planes , which was put up by Jet Airways before going to the belly up. Jalan said. A decision is expected early next month.
“It will be at least something that will cover us for the next five to six years,” Jalan said. In what marks the first interview of the new owners for the media since taking control of the airline. “We plan to have 100 plus airlines in five years, 100 plus aircraft fleet. That’s our plan. So the order should support that.”
India still has “enough space” to accommodate more aircraft, especially compared to China, which has a much larger number of aircraft and a comparable population, and the US, which has only one-quarter of the population versus India. 10 times the number of planes. Jalan said.
Jalan said Jet Airways has already hired the most top management for the company, refusing to elaborate before the formal announcement.
The Jalan family, which is little known in India, is based in Dubai and primarily operates in healthcare, real estate and renewable energy in Uzbekistan, Dubai and Russia, said Jalan, who is educated in both Dubai and the US. Was. A so-called NRI for more than three decades, with most of its businesses outside India.
Jet Airways 2.0 – as it is dubbed by the new owners – will be a full-service airline, with most aircraft having a business class once the venture begins. It will also offer a frequent flyer program.
Jalan said the airline would specifically target the corporate market, which was once dominated by Jet and which has connections to major metro cities including New Delhi, Mumbai and Bangalore.
“We are working on everything that we need to do to turn an airline around – whether it’s training infrastructure, whether it’s IT systems, whether it’s marketing plans – on which we speak. Work is being done. All these things will come together beautifully in the next two or three months,” Jalan said.
“That’s how we’re doing it in the present tense, not in the future.”
The winning bidders in the state-run insolvency resolution process for Jet Airways – Dubai-based, Indian-origin businessman Murari Lal Jalan and Florian Fritsch, chairman of London-based financial advisor and alternative asset manager Colorrock Capital Management Ltd – – in the first three months of next year. Plans to start flights, Consortium representative Ankit Jalan said in an interview with Bloomberg News.
Murari Lal’s nephew Jalan said earlier this week that the group would invest around Rs 1,500 crore ($200 million) through equity and debt in the airline over the next six months, half a year earlier than originally planned. .
The potential revival of Jet Airways, which forced creditors to cut 95% of its hair, would be a first for any airline under India’s bankruptcy laws and would intensify competition in one of the world’s most cut-throat aviation markets.
Founded by ticketing agent-turned-entrepreneur Naresh Goyal after India ended a state monopoly on aviation in the early 1990s, Jet Airways became popular among fliers as an attractive alternative to Air India. It previously offered full-service flights to cities including London and Singapore. A group of low-cost airlines introduced cheap fares for no-frills services.
Jalan, 37, who is heading the consortium’s airline venture, told Jet Airways’ old offices outside New Delhi on Wednesday evening, “The response we saw on the return of the Jet Airways brand was an inspiration in itself.”
“That’s why Jet is coming back; To serve the loyal fan base, to serve the people who miss Jett.”
Shares of the airline rose 5.6 per cent in Mumbai on Thursday, their biggest jump in more than three months.
Jet Airways – which had about 21,000 creditors seeking claims worth about $6 billion under the bankruptcy process – is re-entering a notoriously difficult market.
Kingfisher Airlines, founded by beer tycoon Vijay Mallya, ceased operations in 2012 after failing to clear its dues to banks, employees, lessors and airports.
SpiceJet collapsed nearly two years later before its founders regained control and returned to revive the company. Singapore Airlines and AirAsia Group Bhd have also set up local affiliates, but they are not making any money.
fleet plan
Jet Airways now has a fleet of 11 aircraft, including Boeing 737 and 777, as well as Airbus A330 jets. But those planes are mostly old and need to be sold and replaced with newer, more fuel-efficient ones, Jalan said.
Deals for the most popular model, the Boeing 737 MAX jet, could cost more than $12 billion, although discounts are common in large orders.
Jalan said options for the aircraft deal include both outright purchase and lease. While Airbus is considering potentially expedited delivery of its most popular A320neo jets, which have already been sold out for several years, Boeing could potentially revisit the old 225-aircraft order for 737 MAX planes , which was put up by Jet Airways before going to the belly up. Jalan said. A decision is expected early next month.
“It will be at least something that will cover us for the next five to six years,” Jalan said. In what marks the first interview of the new owners for the media since taking control of the airline. “We plan to have 100 plus airlines in five years, 100 plus aircraft fleet. That’s our plan. So the order should support that.”
India still has “enough space” to accommodate more aircraft, especially compared to China, which has a much larger number of aircraft and a comparable population, and the US, which has only one-quarter of the population versus India. 10 times the number of planes. Jalan said.
Jalan said Jet Airways has already hired the most top management for the company, refusing to elaborate before the formal announcement.
The Jalan family, which is little known in India, is based in Dubai and primarily operates in healthcare, real estate and renewable energy in Uzbekistan, Dubai and Russia, said Jalan, who is educated in both Dubai and the US. Was. A so-called NRI for more than three decades, with most of its businesses outside India.
Jet Airways 2.0 – as it is dubbed by the new owners – will be a full-service airline, with most aircraft having a business class once the venture begins. It will also offer a frequent flyer program.
Jalan said the airline would specifically target the corporate market, which was once dominated by Jet and which has connections to major metro cities including New Delhi, Mumbai and Bangalore.
“We are working on everything that we need to do to turn an airline around – whether it’s training infrastructure, whether it’s IT systems, whether it’s marketing plans – on which we speak. Work is being done. All these things will come together beautifully in the next two or three months,” Jalan said.
“That’s how we’re doing it in the present tense, not in the future.”
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