New Delhi: Jet Airways India Ltd., the carrier undergoing a court-monitored process to emerge from bankruptcy, will not return to the skies this month as previously scheduled, according to persons familiar with the situation.
Due to lenders’ reluctance to let it take on any new liabilities, like as an aircraft order, the airline, previously India’s top private carrier, will be unable to sell tickets in September, according to the people, who asked to be anonymous because they were discussing private negotiations. According to one of the persons, Jet is still in discussions with jet makers and lessors about contracts.
A spokeswoman for Jet’s new owners said in a statement that the airline is “extremely close” to completing its initial fleet plan and getting ready to begin sales and resume operations “in the coming weeks.”
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“There is no deadline; target dates are set by us alone, and we have always maintained that this is a marathon, not a sprint.”
According to the statement, Jet is allowed to order any number of planes and add any other assets.
In late August, Bloomberg News reported that Jet was in advanced discussions to order roughly 50 Airbus SE A220 aircraft. Additionally, the carrier is in talks with Boeing Co. and Airbus to possibly place a “sizable” order for aircraft from the 737 Max or A320neo families.
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Murari Lal Jalan, a businessman from Dubai, and Florian Fritsch, the head of the London-based financial services company Kalrock Capital Management Ltd., are taking over Jet after it collapsed in debt in 2019. They promised to get the carrier flying again by March of this year, but despite leasing out the majority of its existing fleet to other airlines, Jet hasn’t made any orders for any new planes. However, it has initiated a social media effort and hired workers.
On October 11, India’s bankruptcy court will hear updates on the status of the new owners’ rescue plan for Jet. A spokeswoman for the Jalan-Kalrock partnership said that the regulator will be alerted as soon as Jet completes its agreements for the purchase of aircraft and engines.
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“Starting or restarting an airline is a complex business, and we want to be sure we take the time to get the best possible terms and contracts for both aircraft and engines, including maintenance contracts, as well as to receive aircraft configured the way we want,” the statement from the new owners said. “If that takes a little more time to get right, that’s fine.”
In light of the ambiguity surrounding China’s Covid laws and travel restrictions, several Boeing Max aircraft that were initially intended for Chinese airlines are now accessible, and Airbus A320neos can be leased. Before granting Jet access to any aircraft, manufacturers will probably demand that it provide a solid business plan and financial assurance.
A request for comment from Boeing did not immediately receive a response. An Airbus representative declined to comment on any conversations the business may or may not be having with clients.
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