Jet lenders plan to sell 75% stake, bidder's net worth should be Rs 1000 cr

Company News

Jet Airways India Ltd.’s lenders invited initial bids to buy as much as 75 percent of the debt-laden carrier, starting a process that will determine the future of India’s oldest surviving private airline.
Potential buyers must submit their interest by April 10, State Bank of India Ltd., the lead creditor, said in a document Monday. A strategic bidder should have a net worth of at least Rs 1,000 crore ($144 million) in the preceding financial year, or at least three years of experience in the airline business.

The airline is credited with successfully breaking the monopoly of state-run Air India Ltd. and was once India’s second-biggest carrier, but its fleet has dwindled to 26 planes from 124 as recently as January. Accumulated losses in nine of the past 11 years have caused Jet Airways to delay payments to banks, lessors and employees, while its founder Naresh Goyal was forced to cede control of the carrier.

Jet Airways, part-owned by Abu Dhabi’s Etihad Airways PJSC, needs Rs 8500 crore to get back on its feet after a fare war by budget airlines wiped out profits and it racked up debt of more than $1 billion.

The fate of Jet Airways is crucial to the legacy of Indian Prime Minister Narendra Modi as he faces an election that begins April 11 after holding power for the last five years. While he remains the favorite in the polls, his party has faced setbacks of late and he has been criticized for not living up to a key election promise to create 10 million new jobs a year. A collapse of Jet Airways, with 23,000 employees, could further dent his credentials.

Consortiums submitting bids should have no more than three members, with each holding a share of no less than 15 percent, according to Monday’s document.

 After qualified bidders are selected, they will be provided access to the company’s data and the bid document...Read More

Pak to return IAF pilot, Sushma at IOC meet, more: Today's top events

Current Affairs:

Before you start the day, take a look at the major events in the country

1. Pakistan to release IAF pilot Abhinandan

Pakistan will release the captured IAF pilot Wing Commander Abhinandan Varthaman today. Calling it a "peace gesture", Pakistan Prime Minister Imran Khan told a joint session of the Pakistan National Assembly that the India-Pakistan situation should not "get out of hand" or otherwise Islamabad "will have to retaliate".

The announcement about Wing Commander Abhinandan Varthaman -- taken prisoner a day earlier -- came hours after India demanded his release and ruled out talks on the issue, saying Pakistan cannot use this issue for a peace deal.

2. Sushma Swaraj in Abu Dhabi to address OIC conclave today

External Affairs Minister Sushma Swaraj on Friday reached Abu Dhabi to attend a conclave of the Organisation of Islamic Cooperation (OIC) as a Guest of Honour.

"Recognising India's engagement with the Islamic world. EAM Sushma Swaraj arrives in Abu Dhabi for the Ministerial Meeting of India has been invited by HH Sheikh Abdullah bin Zayed Al Nahyan, Foreign Minister of UAE as the 'Guest of Honour'," tweeted Ministry of External Affairs Sushma Swaraj.


 Swaraj will address the plenary of the two-day 46th session of the Council of Foreign Ministers of the 57-member body. She has been invited by UAE Foreign Minister Abdullah bin Zayed Al Nahyan to address the OIC meeting...Read More

Jet will re-emerge as a robust airline: Goyal, Etihad CEO in joint message

Companies News:

Jet Airways and Etihad Airways are working together on a resolution plan to make the airline robust and viable, the two airlines said in a joint statement .
The communication comes in the backdrop of lessor actions to ground planes and threats from a section of pilots to stop flying over salary delays.

“Jet Airways, its principal shareholders, including Etihad Airways, and key financial stakeholders are working towards the finalisation and subsequent implementation of the bank-led provisional resolution plan (BLPRP) to ensure the carrier emerges as a financially strong and resilient airline. The approval of the BLPRP by the board of directors of Jet Airways last week was an important step in this direction,” Jet Airways Chairman Naresh Goyal and Etihad’s Chief Executive Officer Tony Douglas said in a joint statement.

“We are confident that once the BLPRP is finalised and implemented, Jet Airways will re-emerge as a viable and robust airline to reclaim its rightful place as the airline of first choice for its customers,” it said.

The statement comes four days after the extraordinary general meeting to approve the increase in authorised share capital and conversion of debt into equity. While Goyal skipped the meeting, Etihad abstained from voting on the resolution. Etihad, which owns 24 per cent in the airline, is also laying stiff conditions to infuse fresh capital. The Abu Dhabi-based airline had earlier demanded stripping Goyal of all his powers and also wants a right of first refusal and waiver from the open offer.


 Jet Airways faces a cash crunch leading to defaults in lease and loan payments. On Saturday, the airline informed the stock exchange that lessors had forced the grounding of two additional aircraft. The airline is also negotiating the early return of some of its leased planes because of fund shortage. Meanwhile pilots are also getting impatient over salary delay...Read More

UAE to invest in refining, petrochemical projects, oil storage in India

International News:

Betting big on rising oil demand in the world's third largest energy consumer, oil-rich UAE it is looking at investing more in refining and petrochemical projects as well as stocking more crude in India.

UAE's Abu Dhabi National Oil Co (ADNOC) and its partner Saudi Aramco have jointly taken a 50 per cent stake in the planned $44 billion refinery-cum-petrochemical complex at Ratnagiri in Maharashtra.

It has hired space at the underground strategic oil storages built at Mangalore and Padur in Karnataka.
"We are looking at expanding investment portfolio in the downstream sectors (particularly) oil refining and petrochemicals," said Sultan Ahmed Al Jaber, Minister of State in the United Arab Emirates and CEO of the ADNOC.

UAE, he said, is looking to go beyond merely selling crude oil to India and wants to develop a strategic partnership.

"We are only looking at strategic partnership given that we can also bring our own crude," he said. "India is not only an important market for us. India is a very strategic partner."
UAE, he said, is looking to expand its cooperation with India and it will look at enhancing avenues of cooperation.

The minister was talking to reporters after receiving Lifetime achievement award at the Petrotech Conference from Prime Minister Narendra Modi.


 Like other major producers, Aramco and ADNOC are looking to lock in customers in the world's third-largest oil consumer through investments...Read More