The Jet Airways revival prospects got yet another boost with one more expression of interest (EoI) being received by the lenders to the airline, as per a report in the Business Standard. This is a Russian Fund headed by Vladimir Putin. They have roped in a local entity to help them with the process. The Committee of Creditors (CoC) has promptly extended the deadline for resolution to March 9.
For a while, it appeared as if the South American airline operators Synergy Group were considered the frontrunners. It now appears they have certain issues and their chances look diminishing. The latest contender is Far East Development Fund which has been set up by the State Corporation Bank for Development and Foreign Economic Affairs. As mentioned, the Russian President Vladimir Putin heads this organisation.
It has been reported that the Far East Development Fund wishes to take over Jet Airways and use it to develop Moscow and St. Petersburg as hubs for carrying traffic on the India-Europe and India-US routes respectively. They may even induct the Sukhoi Superjet 100 passenger aircraft for the Indian domestic destinations. The Fund, if it succeeds in its bid to acquire Jet Airways, may set up a consortium of Russian companies involved in the aviation business as well as some financial services sector to oversee the revival operations.
The Indian entity the Russian fund has associated itself with is the Enso Group which is headed by Vinay Maloo and the group has interests in multiple business segments from capital and finance to energy and infrastructure.
The other entity to have expressed interest in the Jet deal is Prudent ARC, a Pune based company.
A final resolution may still be far away since these agencies would want to do their due diligence exercises and access the books of Jet Airways before making up their minds. The debts on the books of the airline will remain contentious since of the ₹36,090 crore that the various creditors claimed from Jet, only ₹14,640 crore got admitted.
Even the Synergy Group had certain issues on the old credits of the airline. The lenders will have their task cut out in resolving the whole issue amicably so that the airline can go back to flying its aircraft.