Virgin Australia - Velocity Rewards
Member since 11 Dec 2016
Total posts 65
Qantas - Qantas Frequent Flyer
Member since 02 Jul 2011
Total posts 835
It seems to be a continuing mess, wrapped up in the Indian election.
Member since 04 Nov 2017
I'd be surprised if EY even invests further into 9W TBH They're in no financial position to invest in 9W (or VA for that matter), considering the ongoing rumours of EY selling their 9W and VA stakes over the years.
Member since 22 Feb 2018
Total posts 12
EY was once a great airline and great product. Today it’s largely irrelevant an an airline when you have big brother EK some 60 miles away. When DWC becomes fully operational with EK then it’s even closer. EY doesn’t make sense to even exist.
Member since 04 Nov 2011
Total posts 191
Etihad couldn’t afford to buy an old Ozjet frame.
Member since 11 Oct 2014
Total posts 334
I don't know that I'd necessarily agree with your first sentence.Jet clearly, with or without EY's help, is in financial dire straits. EY has already sunk a considerable bag of cash into their 25% investment. What are the alternatives?
1 - see Jet declare bankruptcy (and your investment disappear or evaporate)?
2 - secure a higher share (ie. 33%) of Jet, so that you have hope of preservation in a rescue / restructure?
3 - secure an even higher share (up to 49%) and become the, or a, dominant shareholder - ensuring a prominent role and voice in a bankruptcy / restructuring process? Whilst it may be true that EY is hurting right now, I'd doubt that the 'do nothing' option 1 would be their first choice. The ability to sell their existing interest (despite previous rumours) is now sunk given that the ravens are circling. 'Fire-sale' pricing off-loads - if you can even find someone to sell to - are rarely accreditive.
Some interesting developments:
It is reported that the BoI (Bank Of India) has issued an Expression of Interest over Jet Airways, which is due to close on April 10. They don't waste time. N Goyal (Chairman and primary owner) has been forced off the Board, as condition of on-going bank (loan) support, which apparently has now been withdrawn, after Goyal's exit.
Given that elections are due within the next few weeks, the ruling Govt of India won't be keen on these developments and seeing the privately-owned airline fail. However, the primary bank lenders have already been to the Supreme Court, despite the Indian Government directing them to continue to loan. This state of affairs is likely to become very messy, especially considering the April 10 expiration of the EOI. It could drag on for months and probably will. Another 'Kingfisher' echo? Oh, and EY's top partner negotiator (an ex Jet Airways employee) has shown up. Place your bets or grab your popcorn.
It is a true shame to see what has befallen one of India's previously best carriers.
Member since 29 Nov 2018
Total posts 14
The Abu Dhabi government will continue to prop EY up because if they don't, they've just built a white elephant new airport. They won't want Dubai to control all the air travel in the country.
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Etihad is back onto buying Jet again
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