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trinidadeG
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Re: Jet Airways: reports cash running out

Tue Mar 05, 2019 3:24 pm

vadodara wrote:
trinidadeG wrote:

I was commenting in the context of the above discussion. Even though theres a 28% difference w.r.t. 6E, 9W's revenue generating capacity is an asset that the TATAs would have been interested in (apart from BOM slots). Their market share being negligible is of no concern to Investors like TATA.

We all know that lack of profits (and subsequently, cash flow) is an issue.


Slots without service are not much of a use. By service I am referring to high-frequency connections to medium range routes. IndiGo has eaten Jet's lunch in its so-called fortress of BOM.

Using BOM as a hub-and-spoke is very debatable. At one point, there were 2 terminal where passengers had to be bused in a very inconvenient way. Not sure how many people would prefer if a better alternative was available at DXB and other such airports.

What are you going on about?? I have specifically said that BOM's slots and 9W's revenue generating capacity would be of interest to the TATAs who, if they chose to invest in 9W, would make good use of both the slots as well as 9W's existing network. As opposed to your point that they are worthless because they lack "marketshare". UK would be free to use those slots whichever way their professional route planners think best, IMO.
 
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lightsaber
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Re: Jet Airways: reports cash running out

Tue Mar 05, 2019 3:25 pm

Jet is now cancelling almost a third of their flights.

https://m.businesstoday.in/lite/story/j ... 24564.html

This is ludicrous. A plan should have been on place by last June at the latest. Customers cannot be feeling the love.

I admit I dismissed Kingfisher references early on; I was wrong. Why does India allow employees to be unpaid?

I'm very curious if EY will invest due to the restrictions placed on them.

The BOD of Jet had to see this coming ever since oh... Six months before EY's last investment. This is utter incompetence.

Can they be saved?


Lightsaber
Winter is coming.
 
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lightsaber
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Re: Jet Airways: reports cash running out

Tue Mar 05, 2019 3:33 pm

Jet has pledged assets for a little cash:

https://m.businesstoday.in/lite/story/j ... 24698.html

This only makes me more curious as to EY's decision. Why did Goyal wait so long? :banghead:

We have almost a week to watch as vendors (e.g. aircraft leasors) lose faith.

Lightsaber
Winter is coming.
 
klakzky123
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Re: Jet Airways: reports cash running out

Tue Mar 05, 2019 4:04 pm

lightsaber wrote:
Jet has pledged assets for a little cash:

https://m.businesstoday.in/lite/story/j ... 24698.html

This only makes me more curious as to EY's decision. Why did Goyal wait so long? :banghead:

We have almost a week to watch as vendors (e.g. aircraft leasors) lose faith.

Lightsaber


NG was playing a game of chicken with potential investors. He wanted to hold on to some level of control while securing a cash infusion. None of the investors caved and now NG is in the position of nearly destroying the airline.

This really feels like Kingfisher all over again. I figured NG wouldn't be this stupid but here we are. He had multiple chances to do something and he's been waiting for a deal that will never materialize. All the while, 9W is crashing and burning.
 
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lightsaber
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Re: Jet Airways: reports cash running out

Tue Mar 05, 2019 6:49 pm

klakzky123 wrote:
lightsaber wrote:
Jet has pledged assets for a little cash:

https://m.businesstoday.in/lite/story/j ... 24698.html

This only makes me more curious as to EY's decision. Why did Goyal wait so long? :banghead:

We have almost a week to watch as vendors (e.g. aircraft leasors) lose faith.

Lightsaber


NG was playing a game of chicken with potential investors. He wanted to hold on to some level of control while securing a cash infusion. None of the investors caved and now NG is in the position of nearly destroying the airline.

This really feels like Kingfisher all over again. I figured NG wouldn't be this stupid but here we are. He had multiple chances to do something and he's been waiting for a deal that will never materialize. All the while, 9W is crashing and burning.

It does feel like Kingfisher or 2. Or AirBerlin. EY is probably getting flashbacks to Alitalia too! :flamed:

The union is being too nice:

https://www.bing.com/amp/s/www.moneycon ... 1.html/amp

I would bet that the unpaid dues never happen.

Lightsaber
Winter is coming.
 
subramak1
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Re: Jet Airways: reports cash running out

Tue Mar 05, 2019 8:39 pm

lightsaber wrote:
Exeiowa wrote:
So quite clearly at this point, not only does the company require relief from their debt burden, but they need actual money now. That thread title seems acurate. So I take it that banks can offer some form of debt relief, if I understand correctly from this thread it would be a debt equity swap. But relief from paying back loans is not sufficient, money needs to be injected to cover ongoing expenses and make whole other non bank groups that are owed, before they withdraw what ever service they provide the company be it fuel, airplanes (leasors) or even labour (the employees) without which there is no functioning airline.

<Snip>

I know I would not be putting my money on the line.

Jet has dug a big hole over 7 months. I wouldn't invest. Too much denial for too long. The bankruptcy process in India is fascinating. It allows employees to be denied pay, denied the ability to jump to another company, companies such as leasing companies to question their contract terms for loaning into the country, and the banking system to be put at risk.

But hey, it was just bad PR. ;)

I was so much more optimistic even a few weeks ago about Jet. Now... Kingfisher 2, Air Berlin 2, whatever analogy makes you happy.

Unless EY is given a sweetheart deal, I think they are done. EY's terms we're rejected for too long, the root was allowed to grow. The brand isn't worth what it was, a sad fact.

To others:

If your retirement was dependent on the money put into Jet, would you invest? I wouldn't. Not a dollar.

Lightsaber


If this Indian government comes to power again, I am betting some of these issues you outlined would be addressed. India did not have a half decent bankruptcy code until 2015, they put in place something that has fallen the high and mighty and has been modified to make it more effective. NG of JET is nobody in front of some of these others.

Subu
 
WPvsMW
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Re: Jet Airways: reports cash running out

Tue Mar 05, 2019 8:51 pm

lightsaber wrote:
Why did Goyal wait so long?

Pick one:
1. Ego
2. Ego
3. Ego
 
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unrave
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Re: Jet Airways: reports cash running out

Thu Mar 07, 2019 3:55 am

Etihad doesn't appear to be too keen on the rescue deal anymore
https://www.livemint.com/companies/news ... 21828.html

'Tis going the way of the dodo
17April2019: RIP Jet Airways
 
sibibom
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Re: Jet Airways: reports cash running out

Thu Mar 07, 2019 4:15 am

Time for Tata to pick it up for peanuts? There are no noises in Bombay House, maybe forensic accounting is telling them to stay away.

I was been criticized for saying 5 months back that this is endgame. I am only surprised it lasted so long, mainly cos they didn't pay anyone (other than lower level employees). However, at that point, I felt someone would buy and save it. Now even that is looking unlikely.
 
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lightsaber
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Re: Jet Airways: reports cash running out

Thu Mar 07, 2019 4:25 am

unrave wrote:
Etihad doesn't appear to be too keen on the rescue deal anymore
https://www.livemint.com/companies/news ... 21828.html

'Tis going the way of the dodo

As noted in your link"UAE-based airline is said to be seeking clarity on several contentions that it raised during negotiations".

Translation, they were told they cannot have the terms they wanted, so they aren't investing."

EY is being told to pony up the ready cash. At some point you stop throwing good money after bad. Cest la vie.

Lightsaber
Winter is coming.
 
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unrave
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Re: Jet Airways: reports cash running out

Thu Mar 07, 2019 4:43 am

It looks increasingly likely that come 11MAR Etihad's board will announce that they're not interested in the terms offered under the resolution plan
17April2019: RIP Jet Airways
 
WPvsMW
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Re: Jet Airways: reports cash running out

Thu Mar 07, 2019 5:05 am

EY's BOD ... sticky wicket ... daft to invest more... but if EY balks, EY's investment will be diluted 11:1. Bollocks in a vise.
 
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Spiderguy252
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Re: Jet Airways: reports cash running out

Thu Mar 07, 2019 5:34 am

WPvsMW wrote:
EY's BOD ... sticky wicket ... daft to invest more... but if EY balks, EY's investment will be diluted 11:1. Bollocks in a vise.


How did this pan out at AirBerlin / Alitalia?
Vahroone
 
blrsea
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Re: Jet Airways: reports cash running out

Thu Mar 07, 2019 5:58 am

Banks have till June 30th to work out something, before taking Jet to bankruptcy resolution board. That is after the elections, so have to see if something will work out in 9W's favour. If 9W had defaulted on its debts before October, it would have reached IBC by April, and that would have added pressure on govt (presumably) and maybe banks would have been more lenient going to elections.

Its not over till the fat lady sings. 9W has pledged some FDs and got some loans, have to see how long it will last. Hope something works out so that employees are not left hanging. The only reason employees haven't deserted the company is the hope that it can be saved and they will get back their dues.
 
lutfi
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Re: Jet Airways: reports cash running out

Thu Mar 07, 2019 6:08 am

I presume that EY have now learnt about the sunk cost fallacy... aka don't throw good money after bad
 
JOYA380B747
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Re: Jet Airways: reports cash running out

Thu Mar 07, 2019 6:13 am

On my yesterday's flight with 9W IXB-BOM in J (in a quest to use up as much JP miles as possible), I have actually noticed a rather 'serious' look amongst the cabin crew. The service in premiere was good, but nobody seemed to have a smile on their face at any point of the flight. Maybe my observations are biased but I saw what I saw.
On other notes: No hot/cold towels, and distasteful tap water served as drinking water. My SPL meal was however okay compared to their usual.

I really commend and feel pity for the crew to be continuing their work in such a situation of their employer.
India's biggest loss w.r.t global aviation (so far) - Being an Australasia-Europe stopover.
 
chiad
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Re: Jet Airways: reports cash running out

Thu Mar 07, 2019 7:19 am

lightsaber wrote:
unrave wrote:
Jet Airways has made a filing with the exchange today saying 2 more planes have been grounded, bringing the total to 25.

Meanwhile we received an email this evening from the firm that manages corporate travel of my organisation that they have terminated their contract with Jet Airways

A link at 25 grounded:

http://m.atwonline.com/leasing/jet-airw ... t-defaults

This isn't good that 20% of peak fleet is grounded.

Is Jet current on any leases?

When is too much? EY has been coy. That implies they feel like they are being asked to overpay. They gave conditions. It sounds like their conditions weren't met. So how much will they kick in?

Lightsaber


Goodness. And another 230 planes on order.
:hot:
 
WPvsMW
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Re: Jet Airways: reports cash running out

Thu Mar 07, 2019 7:29 am

Spiderguy252 wrote:
WPvsMW wrote:
EY's BOD ... sticky wicket ... daft to invest more... but if EY balks, EY's investment will be diluted 11:1. Bollocks in a vise.


How did this pan out at AirBerlin / Alitalia?


EY, the "turn around" artist??? A "turn around" of [AB, AZ, 9W...] into stolid Members of the "EY alliance". Things aren't working out, it appears. But on the bright side, if 9W survives, EY will have an awesome 1.8% ownership interest and no board seats. /humour
 
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unrave
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Re: Jet Airways: reports cash running out

Thu Mar 07, 2019 11:56 am

DGCA says only 70 aircraft are operational currently
https://www.thehindubusinessline.com/ec ... 456306.ece
17April2019: RIP Jet Airways
 
MIflyer12
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Re: Jet Airways: reports cash running out

Thu Mar 07, 2019 12:40 pm

CaliguyNYC wrote:
While I feel for the employees a ton, I don't think that is the story here (you have brought it up a few times). Employees are just creditors. Their company has a cashflow issue. I don't know what you want Jet to do.


In U.S. law, employee wages and benefit plan contributions are prioritized ahead of unsecured creditors - even after the firm is under Ch 11 or Ch 7 liquidation, for 180 days of wages to a cap.
 
dtw2hyd
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Re: Jet Airways: reports cash running out

Thu Mar 07, 2019 12:54 pm

MIflyer12 wrote:
CaliguyNYC wrote:
While I feel for the employees a ton, I don't think that is the story here (you have brought it up a few times). Employees are just creditors. Their company has a cashflow issue. I don't know what you want Jet to do.


In U.S. law, employee wages and benefit plan contributions are prioritized ahead of unsecured creditors - even after the firm is under Ch 11 or Ch 7 liquidation, for 180 days of wages to a cap.


I am sure India has similar law about wages, I am guessing airlines are playing with the definition of "wage".

And there is PBGC on which any corporation can dump pension liabilities.

Chapter 11 is the worst form of prioritization of creditors in the world. Under Chapter 11 the sanctity of intended prioritization is violated. Just because it is the law of our land and a Judge signs off on these prioritization orders, it shouldn't be recommended to other countries.

BTW, read somewhere NCLAT(Appellate tribunal for bankruptcies??) building was gutted(with all files??) in a fire and all hearings are halted. At what stage 9W need NCLAT. Is it IBC -> NCLT -> NCLAT in that order.
All posts are just opinions.
 
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unrave
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Re: Jet Airways: reports cash running out

Thu Mar 07, 2019 2:32 pm

Jet Airways has officially grounded 3 more planes, as per its submission to the stock exchange.
17April2019: RIP Jet Airways
 
avier
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Re: Jet Airways: reports cash running out

Thu Mar 07, 2019 3:18 pm

If 9W gets doomed, then 6E gets what, 50% market share?! Considering they will be the one able to absorb most of the vacated capacity. Great for Indian aviation indeed !
Wonder whose next on their death list.
 
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unrave
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Re: Jet Airways: reports cash running out

Thu Mar 07, 2019 3:36 pm

avier wrote:
If 9W gets doomed, then 6E gets what, 50% market share?! Considering they will be the one able to absorb most of the vacated capacity. Great for Indian aviation indeed !
Wonder whose next on their death list.

If 9W goes bust the biggest beneficiary will be SpiceJet - they have the right kind of aircraft to absorb the crew that will find themselves without a job. IndiGo would rather see the back of Go Air, where things are not good either, and the only reason we don't hear much about it is it is not listed so its finances are not well known.
17April2019: RIP Jet Airways
 
Exeiowa
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Re: Jet Airways: reports cash running out

Thu Mar 07, 2019 3:52 pm

WPvsMW wrote:
EY's BOD ... sticky wicket ... daft to invest more... but if EY balks, EY's investment will be diluted 11:1. Bollocks in a vise.


But also if there is no cash injection, which banks either cannot or will not provide, then their equity swap is worth nothing either. Give up ap a bunch of money to stay still does not sound like a great option. EY must have taken enough hits at this point, from other airline investments, to seriously give surrendering in a game of chicken as the best option. Having banks and EY play chicken while Goyal keeps his share seems to be a dangerous game to play.
 
dtw2hyd
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Re: Jet Airways: reports cash running out

Thu Mar 07, 2019 4:08 pm

Exeiowa wrote:
...Having banks and EY play chicken while Goyal keeps his share seems to be a dangerous game to play.


Or Goyal playing possum to short-change banks and push EY out. Private Indian carriers operate on hot cash, just a few RTGS transactions from M-Country, they will be financially healthy by next banking day.
All posts are just opinions.
 
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unrave
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Re: Jet Airways: reports cash running out

Thu Mar 07, 2019 4:18 pm

Exeiowa wrote:
Having banks and EY play chicken while Goyal keeps his share seems to be a dangerous game to play.

The moment banks are issued their new shares NG's stake reduces by half
17April2019: RIP Jet Airways
 
Exeiowa
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Re: Jet Airways: reports cash running out

Thu Mar 07, 2019 4:56 pm

Getting a 50% reduction in the shareholding does not seem so bad in the grand scheme of things when everyone else is getting an 11 fold dilution. Especially when you are not putting up any more capitol but just being awarded new shares to keep you at that %. EY must know the deck is stacked against them and fold. From a slide in one of the links it says that they "only" invested $379M to get their stake and another $150M loan garuntees, but now need to offer up more than that combined amount to save the company. This does not add up. Unless they see some fantastic future buisness oppurtunity it makes no sense. But a weak competitor against incescant competition and a state funded money pit does not seem like the best option. The only player that offers nothing at the table is Goyal and seems like the only one not going anywhere its just wierd.
 
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unrave
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Re: Jet Airways: reports cash running out

Thu Mar 07, 2019 5:12 pm

Exeiowa wrote:
Getting a 50% reduction in the shareholding does not seem so bad in the grand scheme of things when everyone else is getting an 11 fold dilution. Especially when you are not putting up any more capitol but just being awarded new shares to keep you at that %. EY must know the deck is stacked against them and fold. From a slide in one of the links it says that they "only" invested $379M to get their stake and another $150M loan garuntees, but now need to offer up more than that combined amount to save the company. This does not add up. Unless they see some fantastic future buisness oppurtunity it makes no sense. But a weak competitor against incescant competition and a state funded money pit does not seem like the best option. The only player that offers nothing at the table is Goyal and seems like the only one not going anywhere its just wierd.

Nobody is getting a 11 fold dilution. NG was rumoured to bring in Rs 700 cr as additional equity though
17April2019: RIP Jet Airways
 
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lightsaber
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Re: Jet Airways: reports cash running out

Thu Mar 07, 2019 5:18 pm

unrave wrote:
Jet Airways has officially grounded 3 more planes, as per its submission to the stock exchange.

I'm officially confused. Some sources say 28 grounded. DCMA says far more (only 70 flying):

http://www.newindianexpress.com/busines ... 948133.amp

The wheels are coming off. At this point I agree with prior posts that EY has learned the sunk cost fallacy. I think the airline is just trying to get past the election. Without funds, that will not happen.

Lightsaber
Winter is coming.
 
WPvsMW
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Re: Jet Airways: reports cash running out

Thu Mar 07, 2019 6:49 pm

unrave wrote:
Nobody is getting a 11 fold dilution. NG was rumoured to bring in Rs 700 cr as additional equity though


More accurately, nobody is getting an 11-fold dilution, yet. Authorised capital was increased 11-fold. After the debt-equity swaps are completed, then 11 times more shares are sold...
 
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unrave
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Re: Jet Airways: reports cash running out

Fri Mar 08, 2019 1:07 am

WPvsMW wrote:
More accurately, nobody is getting an 11-fold dilution, yet. Authorised capital was increased 11-fold. After the debt-equity swaps are completed, then 11 times more shares are sold...

Nope. Increase of authorised capital by 11 times doesn't entail a 11 fold dilution of equity capital
17April2019: RIP Jet Airways
 
WPvsMW
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Re: Jet Airways: reports cash running out

Fri Mar 08, 2019 1:10 am

... until all the authorized share are sold.
 
lutfi
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Re: Jet Airways: reports cash running out

Fri Mar 08, 2019 3:52 am

Or used for a debt/ equity swap.

While I feel sorry for the Jet staff, this really has been an awfully managed process by Jet senior management.
 
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unrave
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Re: Jet Airways: reports cash running out

Fri Mar 08, 2019 8:21 am

Fly Leasing would redeploy grounded Jet Airways' planes if resolution is not arrived at by the end of the month
https://economictimes.indiatimes.com/in ... 316333.cms
17April2019: RIP Jet Airways
 
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RobK
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Re: Jet Airways: reports cash running out

Sat Mar 09, 2019 12:38 am

VT-JXE believed to have been repo'd by SMBC. Down at Cochin I think. VT-JXJ (another SMBC frame) brand new at Renton WA has been painted all white, now looking for a new customer. VT-JXK also SMBC, now with N reg. GECAS is registering their new undelivered ones on the FAA register so probably seeking new customers for them now. Over the next 4 months they are expecting another 3 from SMBC (additional to the 2 above), 4 from GECAS (additional to the 3 already stored at BFI) and 1 from Jackson Square.

Time to close the close the doors on this basket case airline.
 
edealinfo
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Re: Jet Airways: reports cash running out

Sat Mar 09, 2019 12:52 am

RobK wrote:

Time to close the close the doors on this basket case airline.

Naresh Goyal, the owner, is hailed as a Magician. It is not over till it is finally over.
 
WPvsMW
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Re: Jet Airways: reports cash running out

Sat Mar 09, 2019 1:02 am

Naresh Goyal, the founder and former majority owner, now down to 20% ... perhaps waiting to buy it out of bankruptcy, and use the capital loss against capital gains elsewhere in the Goyal universe.
 
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unrave
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Re: Jet Airways: reports cash running out

Sat Mar 09, 2019 5:43 am

RobK wrote:
VT-JXJ (another SMBC frame) brand new at Renton WA has been painted all white, now looking for a new customer.

Here you go
Image
Pic Courtesy: Woody's Aeroimages
17April2019: RIP Jet Airways
 
WPvsMW
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Re: Jet Airways: reports cash running out

Sat Mar 09, 2019 9:48 am

Is that paint or a skin? A skin would be less work for a "disguise". And if paint, why are the rudder and scimitars not painted?
 
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Phosphorus
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Re: Jet Airways: reports cash running out

Sat Mar 09, 2019 4:11 pm

WPvsMW wrote:
Is that paint or a skin? A skin would be less work for a "disguise". And if paint, why are the rudder and scimitars not painted?


No idea about scimitars/winglets, but rudders are known to be a very delicately handled piece of kit. They arrive to the final assembly line already painted, and the companies that manufacture and paint them are very conscious of precision nature of this work. It appears that these days, even NTU frames will sport original customer's livery on the rudder, until the aircraft is sold, and only then the painting of the rudder will be undertaken.

From layman's point of view, it does make a lot of sense -- airflow around rudder is critical for safe flight, so the surface has to be painted very neatly; even minimal input on rudder position results in significant change for direction of travel, so joints and control inputs have to be clean and free from paint deposits in critical areas; rudder has to be balanced, so layer thickness is critical, etc.
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aemoreira1981
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Re: Jet Airways: reports cash running out

Sat Mar 09, 2019 4:25 pm

Planespotters lists one of their owned frames as now stored, VT-JEX, a B77W. (The B77Ws are among the few planes that 9W actually owns.)
 
vadodara
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Re: Jet Airways: reports cash running out

Sat Mar 09, 2019 4:54 pm

subramak1 wrote:
lightsaber wrote:
Exeiowa wrote:
So quite clearly at this point, not only does the company require relief from their debt burden, but they need actual money now. That thread title seems acurate. So I take it that banks can offer some form of debt relief, if I understand correctly from this thread it would be a debt equity swap. But relief from paying back loans is not sufficient, money needs to be injected to cover ongoing expenses and make whole other non bank groups that are owed, before they withdraw what ever service they provide the company be it fuel, airplanes (leasors) or even labour (the employees) without which there is no functioning airline.

<Snip>

I know I would not be putting my money on the line.

Jet has dug a big hole over 7 months. I wouldn't invest. Too much denial for too long. The bankruptcy process in India is fascinating. It allows employees to be denied pay, denied the ability to jump to another company, companies such as leasing companies to question their contract terms for loaning into the country, and the banking system to be put at risk.

But hey, it was just bad PR. ;)

I was so much more optimistic even a few weeks ago about Jet. Now... Kingfisher 2, Air Berlin 2, whatever analogy makes you happy.

Unless EY is given a sweetheart deal, I think they are done. EY's terms we're rejected for too long, the root was allowed to grow. The brand isn't worth what it was, a sad fact.

To others:

If your retirement was dependent on the money put into Jet, would you invest? I wouldn't. Not a dollar.

Lightsaber


If this Indian government comes to power again, I am betting some of these issues you outlined would be addressed. India did not have a half decent bankruptcy code until 2015, they put in place something that has fallen the high and mighty and has been modified to make it more effective. NG of JET is nobody in front of some of these others.

Subu


Umm yes! It has been a long journey when AI/IA were part of the Govt.

Jet is the 2nd most complicated mess to clear after AI.
 
DTWLAX
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Re: Jet Airways: reports cash running out

Sat Mar 09, 2019 5:12 pm

Only domestic flights were being canceled so far. Now the first international route has been canceled. PNQ-SIN is canceled March 14 - March 30. Have a feeling this route is not coming back anytime soon.

https://timesofindia.indiatimes.com/cit ... 310421.cms
 
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trinidadeG
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Re: Jet Airways: reports cash running out

Sat Mar 09, 2019 5:52 pm

aemoreira1981 wrote:
Planespotters lists one of their owned frames as now stored, VT-JEX, a B77W. (The B77Ws are among the few planes that 9W actually owns.)

VT-JEX was put into storage at Chennai Airport (MAA) around October last year. The airline also grounded an A333 there at that time, but it was returned to service soon after. Instead, an A332 was put into storage at BOM. (VT-JWV is currently stored)

https://www.financialexpress.com/indust ... h/1343638/
 
User avatar
RobK
Posts: 3717
Joined: Mon Sep 06, 2004 1:43 pm

Re: Jet Airways: reports cash running out

Sat Mar 09, 2019 5:55 pm

Guys, here's the out-of-service picture as of today with their storage locations. 51 frames not active (I've not counted the 4 still in Seattle in that figure). All the others are flying today.

Hope you find it interesting/useful ! Credit to flightradar24.com and planespotters.net.

B737/B738/B739/B38M:
JBB
JBC
JBD
JBE
JBF
JBG HYD
JBH CGK
JBJ
JBK
JBL BOM
JBQ
JBR
JBS
JBU HYD
JBV BDQ
JBW
JBX
JBY
JBZ

JFA
JFB
JFC
JFD HYD
JFE
JFF HYD
JFG DEL
JFH MAA
JFJ NAG
JFK COK
JFL DEL
JFM DEL
JFN
JFP COK
JFQ BOM
JFR
JFS
JFT
JFW HYD
JFX
JFY HYD
JFZ HYD

JGA
JGC
JGD DEL
JGF BOM
JGG BOM
JGJ BOM
JGK
JGP
JGQ
JGR
JGS
JGT
JGU
JGV HYD
JGW
JGX
JGY DEL

JLE
JLF
JLH COK
JLJ

JTA DEL
JTB BLR
JTC
JTD CGK
JTE COK
JTF DEL
JTG DEL
JTH
JTK
JTL DEL
JTM BOM
JTN

JXA HYD
JXB HYD
JXC BOM
JXD BOM
JXE COK
JXF BFI
JXG BFI
JXH BFI
JXJ RNT

SIZ
SJA
SJI
SJJ



A330:
JWP
JWQ DEL
JWR
JWS AMS
JWT
JWU
JWV BOM
JWW



B77W:
JEH
JEK
JEM
JEQ
JES
JET
JEU
JEV
JEW
JEX MAA



ATR:
JCJ MAA
JCK DEL
JCL
JCM MAA
JCN IDR
JCP MAA
JCQ
JCR
JCS
JCT
JCU MAA
JCV
JCW
JCX DEL
JDC MAA
JDD DEL
 
User avatar
lightsaber
Moderator
Posts: 20246
Joined: Wed Jan 19, 2005 10:55 pm

Re: Jet Airways: reports cash running out

Sat Mar 09, 2019 5:59 pm

EY/Abu Dhabi is obviously hurting for cash. They must be desperate to sell the Crysler building for a mere $150 million.

https://www.cnn.com/2019/03/08/business ... index.html

That doesn't look good for sending cash to Jet under the current terms.

Lightsaber
Winter is coming.
 
WPvsMW
Posts: 2252
Joined: Thu Mar 23, 2017 7:30 pm

Re: Jet Airways: reports cash running out

Sat Mar 09, 2019 6:34 pm

“Even though the airline is accommodating passengers in alternate airlines at no extra cost, some will have to pay extra for domestic connections to Pune."


https://timesofindia.indiatimes.com/cit ... 310421.cms

Awesome DoubleSpeak... find a flight to BOM and no difference in fare to BOM/SIN, and too bad if BOM/SIN isn't available on your original travel date.
 
User avatar
trinidadeG
Posts: 239
Joined: Tue Jun 30, 2009 7:43 am

Re: Jet Airways: reports cash running out

Sun Mar 10, 2019 4:08 pm

Naresh Goyal to shed stake to 17% in Jet bailout plan; lenders to hold 30%


Jet Airways’ rescue plan, which will be taken up for approval by the board of Etihad Airways on Monday, will see a major rejig in the promoters’ shareholding. According to the finalised resolution plan, Jet Founder and Chairman Naresh Goyal’s stake will come down to 17 per cent from the current 51 per cent, sources in the know said. As sought by Jet’s joint venture partner Etihad, Goyal will step down from the board.

Etihad will own 24.9 per cent in Jet, marginally up from its 24 per cent stake now. The consortium of lenders, led by State Bank of India (SBI), will hold 30 per cent, while new investors — National Infrastructure Investment Fund — will pick up 20 per cent in the airline. Another 8 per cent shareholding will remain with public, it is learnt. It will possibly be a multi-part deal.

The resolution plan has undergone several changes in the past few months due to the lack of a consensus among the stakeholders. Although the Abu Dhabi-headquartered airline had earlier raised concerns about the structuring of the deal, a source close to the development told Business Standard that the Etihad board is likely to approve the latest plan as ‘’they have got virtually everything they wanted’’. Etihad is keen to take control of an airline in a vibrant market, the source added.

Goyal and Etihad, who have had a public spat recently on the contours of the draft resolution plan, have already signed a memorandum of understanding (MoU) based on the recast deal, people close to the development pointed out.
When approached for comment, Etihad said on Saturday it continued to work constructively with Jet management, board and stakeholders. Jet Airways did not respond to the Business Standard query on the way forward. Continued investment in Jet is an attraction for Etihad as it gives the airline access to the fastest growing domestic market. The strategic ties between India and the UAE are also said to be a driver. But, the Etihad management has been grappling with its own challenges and restructuring its network and fleet order. “It is for Eithad board to decide whether it sees Jet as a viable investment which can give returns,” said an aviation source.

Etihad had turned cold about investing fresh capital in Jet Airways as the stock market regulator Sebi did not approve the open offer waiver exemption it sought. At the same time, Etihad does not want to let go of its investment, another source said.

Etihad, which embarked on an equity investment strategy in 2011 expanding its global presence, put in $349 million in Jet in 2013.

While then CEO James Hogan was upbeat on strategic investments for market expansion, the current management under chief executive Tony Douglas thinks differently. However, a greater say in operating Jet Airways and reduction of debt are among the factors which could drive Etihad's future investment, executives tracking the development pointed out.

If the plan is okayed by the Etihad board and subsequently by the lenders’ boards and regulatory authorities, Jet, with a debt pile of more than Rs 8,000 crore, would be saved from being dragged to the Insolvency and Bankruptcy Board of India (IBC). So close to the Lok Sabha election, the government does not want an airline going down. It is believed that the government has played a pro-active role in bailing out Jet Airways at a critical time as this.

Already, Jet has grounded 40 per cent of its fleet and cancelled hundreds of flights across routes. Its lessors have threatened to take away planes if no resolution is reached by end of the month. Jet is running out of cash and options, insiders said. As per the bank-led resolution plan, Jet needs Rs 8,500 crore to meet the funding gap. The immediate funding requirement is pegged between Rs 500-1,000 crore as the airline needs to pay lessors and staff salaries.

https://www.business-standard.com/artic ... 699_1.html
 
WPvsMW
Posts: 2252
Joined: Thu Mar 23, 2017 7:30 pm

Re: Jet Airways: reports cash running out

Sun Mar 10, 2019 5:52 pm

CICA's Suresh Prabhu, interview: https://economictimes.indiatimes.com/in ... 341926.cms

More details of BLPRP:
https://www.justdial.com/JdSocial/news/1552113236224000
We find out today if EY will fund Goyal's share of new investment (if he leaves the Board, supposedly a provision in the EY/Goyal MOU).

Good summary, including the Air Sahara blunder:
https://www.businesstoday.in/magazine/t ... 24541.html

IMO, EY will write the check for Rs 750 crore and 9W will survive.

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