It seems to be a continuing mess, wrapped up in the Indian election.
Jet is now down to about 15 aircraft and having fuel supply issues. Slots at BOM have been temporarily given away, mostly to Vistara and AirAsia India.
If it manages to survive, and the longer it goes on the more i doubt this, it's going to be a shadow of its former self.
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.
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.
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.
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.
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owner) has been forced off the Board, as condition of on-going bank (loan) support, which apparently has now been withdrawn, after Goyal's exit.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.
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.
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
Madhatter49
Madhatter49
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moa999
moa999
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It seems to be a continuing mess, wrapped up in the Indian election.
DanV
DanV
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Member since 04 Nov 2017
Total posts 96
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.
JonnoPER
JonnoPER
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.
russell
russell
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Member since 04 Nov 2011
Total posts 232
Etihad couldn’t afford to buy an old Ozjet frame.
kimshep
kimshep
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Member since 11 Oct 2014
Total posts 412
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.
kimshep
kimshep
Qantas - Qantas Frequent Flyer
Member since 11 Oct 2014
Total posts 412
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.
NoAngelNZ
NoAngelNZ
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.