Cash-strapped Jet Airways is attracting potential buyers
JET Airways is receiving renewed interest from potential buyers now that it is being shut down by Indian aviation authorities
JET Airways is receiving renewed interest from potential buyers now that it is being shut down by Indian aviation authorities.
Authorities grounded the cargo carrier in April, removing 37 routes across India and 19 international routes, owing to an acute cash crunch. The airline handled 10-15 per cent of air cargo in India, according to the Directorate General of Civil Aviation.
The flight ban affected the entire Indian air cargo sector, bumping up prices for shippers over the short and medium term. Some forwarders initially had to either route cargo through multiple flights to a destination city or turn to slower land transportation modes, reported American Shipper.
Synergy Group, which owns a portfolio of airlines in South America, has again bid to acquire the carrier. Also expected to show interest in buying Jet Airways is Hyderabad-based aviation ground handler Turbo Aviation, a Dubai-based fund and London-based conglomerate Hinduja Group.
Synergy surfaced as the sole potential buyer for Jet Airways prior to November. A major obstacle to the proposed sale is clarity on Jet's slots. In late August, India's Civil Aviation Agency extended the temporary allocation of the airline's slots and bilateral foreign flying rights to other airlines until December, pending the outcome of a proposed sale of the carrier.
After several previous extensions, Jet's lenders have drawn a line in the sand, setting January 15 as the final deadline for submitting expressions of interest among buyers.