Jet Airways’ Boeing 777 airplanes are up for sale as the winning bidder has moved India’s National Company Law Tribunal (NCLT) to resolve the airline’s financial issues, according to a report by Business Standard.
The airline is currently trying to negotiate deals with lenders and former employees in order to start operations again, the report said.
The three 777 aircrafts has sought attention from Malta-based Ace Aviation VIII Limited, who is also the winning bidder, after it were put up for auction.
A letter of intent was issued to the firm, which paid a $4.6 million deposit money to claim the airplanes. It also paid $1 million to be a part of the auction for two other 777s, the report said.
According to Business Standard, the firm received a mail from Jet Airways on November 11th, stating that the sales were delayed, and will resume in the next 60-90 days.
Jet Airways’ reason to postpone the sale of the 777s is due to the conflict between its new owners, the Jalan-Kalrock consortium, its lenders and ex-employees.
The report added that an airline union is trying to stop the sale of these aircrafts until Jet Airways clears its former employees’ provident fund and gratuity dues.
The airline is reportedly in talks about the source of these payments, and is insisting that the cost should be shared between the airline and the lenders.
The banks – which have already taken a 95 percent haircut – do not want to take on any additional financial burden and want Jet Airways to take full ownership of clearing employee dues, a report by aviation publication Simply Flying said.
“According to Jet’s resolution plan, the ₹4.7 billion ($56.8 million) set aside for repayment includes ₹3.8 billion ($46 million) for creditors and the remaining ₹52 million ($6.3 million) for employee repayment. The current ex-employee liabilities, as estimated by the authorities, are far more than Jet had provisioned for,” the report added.
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