SpiceJet is now the sole Indian airline left with MAX orders.
That is Boeing's biggest issue here.
The A320NEO becoming the default plane for airlines from a market of such potential.

All international routes stand suspended till 15APR19. The airline seems to operate less than 15 planes currently. Meanwhile 9W staff have started protesting at BOM

Kingfisher vs Jet Airlines: Aviation authorities use different rulebooks to deal with each airline’s crisis

In 2012, one major airline collapsed. Two years later, another was on the brink. As Jet Airways – the country’s oldest private airline that has been operating for 25 years — is in free fall (its operating fleet count has dropped to below 10), the major concern revolves around how the passenger impact is minimised.

While SpiceJet lived to see another day, Kingfisher Airlines was not as lucky. Time will tell what happens with Jet.

On Thursday, Jet announced the suspension of its international departures from India. The last of those flights were inbound to India. Attention has shifted to the consortium of bankers as the Express of Interest (EoI) deadline ends later on Friday. The number of entities that have expressed interest and which of those entities ends up as the buyer will decide the future of the beleaguered airline.

edealinfo wrote:

Private equity firms TPG Capital and Indigo Partners, NIIF and Etihad Airways have bid for a stake in Jet Airways (India) Ltd

Lenders are now waiting for EoIs from Air Canada & Delta Airlines, which are likely to submit their initial bids in the next two days

https://www.livemint.com/market/mark-to ... 47165.html

I will be truly astounded if DL submits a bid for 9W, but if they do I would expect it to be one of the most highly conditional offers they've ever made, with many strings attached. And surely there must be a big potential payoff of some sort written into the deal beyond simply gaining India-originating feed for their planned USA-India nonstop.

Spicejet goes after Jet’s slots with a vengeance.......

“Budget Indian airline SpiceJet Ltd said on Friday it planned to lease a "first lot" of 16 Boeing Co 737-800s to help fill a gap in aviation capacity that ratings agency ICRA said has pushed up fares by 30 to 40 percent since SeptembeR”

I think the 16 737NGs that SpiceJet is leasing will be primarily used to fill the holes left to their network after they had to ground 12 MAXes.

unrave wrote:

All international routes stand suspended till 15APR19. The airline seems to operate less than 15 planes currently. Meanwhile 9W staff have started protesting at BOM

from April 15, the pilots go on strike which conveniently means that SBI will blame the pilots for Jet’s permanent grounding in the near future

P1aneMad wrote:

I think the 16 737NGs that SpiceJet is leasing will be primarily used to fill the holes left to their network after they had to ground 12 MAXes.

They had quite a bit of slack in their schedule before the MAXes were grounded, so the grounding did not affect their schedules to a great extent. These additional aircraft will significantly boost their capacity. Check mate IndiGo.

Jet Airways have given back their 3 remaining slots at London Heathrow to Etihad Airways:

https://twitter.com/SeanM1997/status/11 ... 8384820224

unrave wrote:

P1aneMad wrote:

I think the 16 737NGs that SpiceJet is leasing will be primarily used to fill the holes left to their network after they had to ground 12 MAXes.

They had quite a bit of slack in their schedule before the MAXes were grounded, so the grounding did not affect their schedules to a great extent. These additional aircraft will significantly boost their capacity. Check mate IndiGo.

And if you read spicejet’s release they specifically state that the 16 newly leased aircraft are the first round of new leases meaning that they are in negotiations for more

SeanM1997 wrote:

Jet Airways have given back their 3 remaining slots at London Heathrow to Etihad Airways:

https://twitter.com/SeanM1997/status/11 ... 8384820224

With this the airline's operations at London come to an end.

DL747400 wrote:

edealinfo wrote:

Private equity firms TPG Capital and Indigo Partners, NIIF and Etihad Airways have bid for a stake in Jet Airways (India) Ltd

Lenders are now waiting for EoIs from Air Canada & Delta Airlines, which are likely to submit their initial bids in the next two days

https://www.livemint.com/market/mark-to ... 47165.html

I will be truly astounded if DL submits a bid for 9W, but if they do I would expect it to be one of the most highly conditional offers they've ever made, with many strings attached. And surely there must be a big potential payoff of some sort written into the deal beyond simply gaining India-originating feed for their planned USA-India nonstop.

There is no chance that Delta would bid. Also, all the other so called interested parties will likely drop out when final bids are placed. The only likely bidder, if any, in the final round could be be Etihad, and the NIIF

9W's last ever international flight (AMS-DEL 9W233)?

https://www.flightradar24.com/JAI233/20214bdc

Blaming people for not wanting to work for free seems a little off to me...

Pretty sure none of those bank people will be going home unpaid because these loans went bad.

There is that famous quote from a nobel about bankcuptsy which goes something like this

First it happen slowly then all of a sudden.

Most seem to follow that script. There is a bit from the same novel that talks about what lead up to it, where it talks about false friends and hangers on who all bail when the situation becomes evident. expect some of that next. People who never really knew them, were only slightly involved. We will see which rats come slinking out of the shaddows as it gets wound down.

Waiting on serious bidders?
http://m.atwonline.com/airlines/jet-air ... us-bidders

That means the bids aren't high enough... Rhoo rhoo. Usually the first bid is the best bid.

I don't know if Jet can survive to the pilot strike...

Lightsaber

Per Flightradar only four birds in the air including the AMS return flight. In a matter of few hours this number will likely be zeroed out. https://flightaware.com/live/fleet/JAI

Each day of cancellations means more debt to process refunds. Will see if any bidder wants to take up all this mess. Sad to see this fate for 9W

lightsaber wrote:

I don't know if Jet can survive to the pilot strike...

Lightsaber

I am more worried about how pilots are going to survive rest of their lives

anshabhi wrote:

I am more worried about how pilots are going to survive rest of their lives

You don’t have to take that psychological burden (if any) upon yourself. so, please don’t worry!

pilots are highly skilled and prized profession and of all of Jet’s employees, they are the most likely to find good paying jobs in other airlines

“The Indian prime minister's office has called for an urgent meeting to discuss issues with debt-laden carrier Jet Airways at 6pm India time (1230 GMT) on Friday, television news channels reported, citing sources. The Principal Secretary to Prime Minister Narendra Modi will chair the meeting, the TV channels said.“

"SpiceJet will induct 16 Boeing 737-800 NG aircraft on dry lease and has applied to the Directorate General of Civil Aviation (DGCA) for a no objection certificate (NOC) to import the aircraft," the airline said. "Subject to regulatory approvals, the aircraft would begin joining SpiceJet fleet in the next 10 days," it added.

edealinfo wrote:

“The Indian prime minister's office has called for an urgent meeting to discuss issues with debt-laden carrier Jet Airways at 6pm India time (1230 GMT) on Friday, television news channels reported, citing sources. The Principal Secretary to Prime Minister Narendra Modi will chair the meeting, the TV channels said.“

To talk about what??? Now?? Looks like everyone's waking up now. When this thread was started eight months back our fellow netters probably had more insight than these officials. There is not much to offer from any agency at this time other than a golden handshake.

unrave wrote:

SeanM1997 wrote:

Jet Airways have given back their 3 remaining slots at London Heathrow to Etihad Airways:

https://twitter.com/SeanM1997/status/11 ... 8384820224

With this the airline's operations at London come to an end.

Wow, after just over 10 years, it will be a real shame not to see these any more.

blr380 wrote:

edealinfo wrote:

“The Indian prime minister's office has called for an urgent meeting to discuss issues with debt-laden carrier Jet Airways at 6pm India time (1230 GMT) on Friday, television news channels reported, citing sources. The Principal Secretary to Prime Minister Narendra Modi will chair the meeting, the TV channels said.“

To talk about what??? Now?? Looks like everyone's waking up now. When this thread was started eight months back our fellow netters probably had more insight than these officials. There is not much to offer from any agency at this time other than a golden handshake.

Not all, many were saying it was a PR hatchet job till the very end One alleged "journo" and his lackey were blaming it all on Times group, Business-standard, some other "biased journos" and everyone else, even lying that pilots were paid basic salary! They were wondering why the employees weren't raising a stink even when not paid, so all that news should be fake PR hatchet job! They were calling all those posting news on worsening situation in Jet as shills of Indigo etc. Check out the Indian political thread in non-av too.

Goyal played a high stakes game and by the time he realized he had overplayed his hand, things were at a breaking point. If the PMO getting involved is true, expect SBI/PNB to extend around Rs 750-1500 crores loan to push the airline along for another month till elections are over.

Push what along?

I can't imagine anyone would be making a jet booking at present.

blrsea wrote:

Goyal played a high stakes game and by the time he realized he had overplayed his hand, things were at a breaking point. If the PMO getting involved is true, expect SBI/PNB to extend around Rs 750-1500 crores loan to push the airline along for another month till elections are over.

Congress is till today facing heat for extending loans to KF. Such a move by BJP would come at a great future political cost. I don't see it happening.

There was enough time for it to happen so far, but it just didn't happen.

blrsea wrote:

blr380 wrote:

edealinfo wrote:

“The Indian prime minister's office has called for an urgent meeting to discuss issues with debt-laden carrier Jet Airways at 6pm India time (1230 GMT) on Friday, television news channels reported, citing sources. The Principal Secretary to Prime Minister Narendra Modi will chair the meeting, the TV channels said.“

To talk about what??? Now?? Looks like everyone's waking up now. When this thread was started eight months back our fellow netters probably had more insight than these officials. There is not much to offer from any agency at this time other than a golden handshake.

Not all, many were saying it was a PR hatchet job till the very end One alleged "journo" and his lackey were blaming it all on Times group, Business-standard, some other "biased journos" and everyone else, even lying that pilots were paid basic salary! They were wondering why the employees weren't raising a stink even when not paid, so all that news should be fake PR hatchet job! They were calling all those posting news on worsening situation in Jet as shills of Indigo etc. Check out the Indian political thread in non-av too.

Goyal played a high stakes game and by the time he realized he had overplayed his hand, things were at a breaking point. If the PMO getting involved is true, expect SBI/PNB to extend around Rs 750-1500 crores loan to push the airline along for another month till elections are over.

Agree - but, 1500 crores will do nothing at this time. Can barely pay for refunds. No staff will return without salaries and this start-up money is too late if it does get released. Not to get political, but the elections have nothing to do with 9W fiasco at this time.

Jet will operate only 6-7 aircraft from now onwards:

https://m.timesofindia.com/business/ind ... 854135.cms

So it's officially the smallest airline now

NG has submitted an EoI minutes before the deadline

unrave wrote:

NG has submitted an EoI minutes before the deadline

Ha - so do we know all the players that submitted?
Btw 9W
s stock is still holding strong - don't understand this. Seems like even if no flights are flown, the stock won't plummet.

blr380 wrote:

blrsea wrote:

blr380 wrote:

To talk about what??? Now?? Looks like everyone's waking up now. When this thread was started eight months back our fellow netters probably had more insight than these officials. There is not much to offer from any agency at this time other than a golden handshake.

Not all, many were saying it was a PR hatchet job till the very end One alleged "journo" and his lackey were blaming it all on Times group, Business-standard, some other "biased journos" and everyone else, even lying that pilots were paid basic salary! They were wondering why the employees weren't raising a stink even when not paid, so all that news should be fake PR hatchet job! They were calling all those posting news on worsening situation in Jet as shills of Indigo etc. Check out the Indian political thread in non-av too.

Goyal played a high stakes game and by the time he realized he had overplayed his hand, things were at a breaking point. If the PMO getting involved is true, expect SBI/PNB to extend around Rs 750-1500 crores loan to push the airline along for another month till elections are over.

Agree - but, 1500 crores will do nothing at this time. Can barely pay for refunds. No staff will return without salaries and this start-up money is too late if it does get released. Not to get political, but the elections have nothing to do with 9W fiasco at this time.

Err... See my quote above. 1,500 crore wouldn't pay for half the refunds.

At this time, I estimate the first 7,500 crore just pays past due bills. No one can be made even half whole and have a rescue business case. At this point Jet is being allowed to operate for reasons I do not understand.

Lightsaber

lightsaber wrote:

At this time, I estimate the first 7,500 crore just pays past due bills.

Lightsaber

How do you know the plan doesn’t involve paying just new bills not old ones for which lessors have anyway withdrawn their aircraft. Heck, the new bills could go to the “new” Jet and the old bills could remain on the old or bad Jet

Didn’t some comment athat anything and anyway Suresh Prabhu goes in Government he leaves beyond a trail of destruction. how come the media has not picked up on this story. jet’s Collapse also happened under his watch and with public sector banks holding the bag, he should take some blame.

edealinfo wrote:

Didn’t some comment athat anything and anyway Suresh Prabhu goes in Government he leaves beyond a trail of destruction. how come the media has not picked up on this story. jet’s Collapse also happened under his watch and with public sector banks holding the bag, he should take some blame.

Ohhh right just see how safe railways has been ever since he left the ministry..

CaliguyNYC wrote:

unrave wrote:

NG has submitted an EoI minutes before the deadline

Ha - so do we know all the players that submitted?
Btw 9W
s stock is still holding strong - don't understand this. Seems like even if no flights are flown, the stock won't plummet.

I strongly feel some manipulation is going on. However, puts for 9W have become very expensive with even 220 PE selling around 8 while current stock price is 260 and expiry is only 2 weeks away. The stock is under FNO ban and that's another reason for limited voltality currently

edealinfo wrote:

lightsaber wrote:

At this time, I estimate the first 7,500 crore just pays past due bills.

Lightsaber

How do you know the plan doesn’t involve paying just new bills not old ones for which lessors have anyway withdrawn their aircraft. Heck, the new bills could go to the “new” Jet and the old bills could remain on the old or bad Jet

I don't know Indian bankruptcy law. Please provide a link where they can walk away from obligations. Is forming a bad and good jet allowed? Indian law is so complicated, I'm not sure what is allowed. A form of Chapter 11/7 is obviously needed.

From what I've seen, walking away from obligations is... messy at best. Is there a clean way to avoid fighting every claim?

What is a bidder getting? Opaque legal processes slow economic growth, read Bernstein's excellent books.

Lightsaber

Who in the right minds will buy a ticket on Jet now. Any point in even flying these 6 or 7 aircraft. Might as well scrap all flights and wait for a solution from the consortium of lenders.

Local news (not India) said international flights suspension are until Monday?

edealinfo wrote:

Didn’t some comment athat anything and anyway Suresh Prabhu goes in Government he leaves beyond a trail of destruction. how come the media has not picked up on this story. jet’s Collapse also happened under his watch and with public sector banks holding the bag, he should take some blame.

Umm Prabhu has gone on record that govt cannot interfere in an individual airline’s business. Where is the
Problem with that approach?

In any case banks are Different ministry, not Prabhu. Why should the FM compound the mistakes of past by lending more?

lightsaber wrote:

edealinfo wrote:

lightsaber wrote:

At this time, I estimate the first 7,500 crore just pays past due bills.

Lightsaber

How do you know the plan doesn’t involve paying just new bills not old ones for which lessors have anyway withdrawn their aircraft. Heck, the new bills could go to the “new” Jet and the old bills could remain on the old or bad Jet

I don't know Indian bankruptcy law. Please provide a link where they can walk away from obligations. Is forming a bad and good jet allowed? Indian law is so complicated, I'm not sure what is allowed. A form of Chapter 11/7 is obviously needed.

From what I've seen, walking away from obligations is... messy at best. Is there a clean way to avoid fighting every claim?

What is a bidder getting? Opaque legal processes slow economic growth, read Bernstein's excellent books.

Lightsaber

At this stage I don't think it matters. They would be better to just sell off the assets. That we know the banks can do. They then work out some formula for how each debt holder gets paid. If I had to bet, that is probably what the bidders will propose.

edealinfo wrote:

anshabhi wrote:

I am more worried about how pilots are going to survive rest of their lives

You don’t have to take that psychological burden (if any) upon yourself. so, please don’t worry!

pilots are highly skilled and prized profession and of all of Jet’s employees, they are the most likely to find good paying jobs in other airlines

The pilots have job offers from Indigo, SpiceJet and the ME3. The wise ones already jumped ship.

This shouldn't be a surprise. Jet failed back in October when this thread started. It just took a long time to accept reality.

The big damage is to the banks. This will impact Indian lending for years.


Lightsaber

edealinfo wrote:

lightsaber wrote:

At this time, I estimate the first 7,500 crore just pays past due bills.

Lightsaber

How do you know the plan doesn’t involve paying just new bills not old ones for which lessors have anyway withdrawn their aircraft. Heck, the new bills could go to the “new” Jet and the old bills could remain on the old or bad Jet

That is where the rest of the world differs from US Chapter 11 restructuring laws, where the preferential hierarchy goes into dustbin and airline management can pay whoever they want, with a Judge's signature, of course.

Most of the world has bankruptcy laws (US Chapter 7) where a company goes into receivership/administration/insolvency, where creditors get paid by the initial hierarchy.

Chapter 11 which is actually a restructure not bankruptcy in true terms, hence the confusion.

9W233 just landed at DEL. According to Flightaware, there are 0 Jet Airways flights airbourne at the moment.

The airline outlined routes that they will supposedly be operating today, but won't be surprised if many of those too don't come to fruition.

9W may be done for good.

I guess no international flights for 3 reasons:
1. no money to operate it.
2. Creditors may seize the aircraft with a court order and hold it as collateral till the debt is settled.
3. Pilots may strike when some of their aircraft are still at airports internationally.

So, they needed all their wide bodies to “come home to mamma” (home base) before it is too late. They would rather it rot at INdian airports (like the Kingfisher planes) than a foreigner gain some utility from it

dtw2hyd wrote:

edealinfo wrote:

lightsaber wrote:

At this time, I estimate the first 7,500 crore just pays past due bills.

Lightsaber

How do you know the plan doesn’t involve paying just new bills not old ones for which lessors have anyway withdrawn their aircraft. Heck, the new bills could go to the “new” Jet and the old bills could remain on the old or bad Jet

That is where the rest of the world differs from US Chapter 11 restructuring laws, where the preferential hierarchy goes into dustbin and airline management can pay whoever they want, with a Judge's signature, of course.

Most of the world has bankruptcy laws (US Chapter 7) where a company goes into receivership/administration/insolvency, where creditors get paid by the initial hierarchy.

Chapter 11 which is actually a restructure not bankruptcy in true terms, hence the confusion.

Dtw2Hyd, I believe you just made my point. Unless India has restructuring laws, jet is done. It must be to advantage for secured assets to allow the business to continue or all the aircraft have liens. Liens where first priority fly them out of India per Capetown. Anything else mucks up asset backed loans for all of India.

Unfortunately, Jet's value was as a going concern. I say was as untangling all of this requires a shutdown.

Sad, but done, unless there is a version of Ch 11. For creditors and employees, that would be best. As there is no net equity, stockholders are out of luck.

Lightsaber

With the 12 planes that spicejet will get in the next 10 days, if deployed at BOM only doing round trips to different points but returning to BOM each time , will it be enough to hog all the available vacated Jet slots. If so, Spicejet has played the master stroke.

edealinfo wrote:

With the 12 planes that spicejet will get in the next 10 days, if deployed at BOM only doing round trips to different points but returning to BOM each time , will it be enough to hog all the available vacated Jet slots. If so, Spicejet has played the master stroke.

The ministry was pretty clear these are temporary grants of slots. Even if Jet goes under, my guess is the GOI will formally allocate the slots through another process

Jet has received a total of 8 EoIs
https://www.financialexpress.com/indust ... g/1546865/

CaliguyNYC wrote:

edealinfo wrote:

With the 12 planes that spicejet will get in the next 10 days, if deployed at BOM only doing round trips to different points but returning to BOM each time , will it be enough to hog all the available vacated Jet slots. If so, Spicejet has played the master stroke.

The ministry was pretty clear these are temporary grants of slots. Even if Jet goes under, my guess is the GOI will formally allocate the slots through another process

Possession is nine tenths of the law. If Jet restarts, they lose some. Otherwise, SpiceJet looks to have played this perfectly. Kudos to them.

SpiceJet can block reallocation until most stay in their possession.

Lightsaber

I am shocked to see SIN, HKG and most other are removed from 9W’s network now. Hope other airlines are taking over these routes affected by this airline cancellation

SQ789 wrote:

I am shocked to see SIN, HKG and most other are removed from 9W’s network now. Hope other airlines are taking over these routes affected by this airline cancellation

LHR is most interesting to me. BOM-LHR lost 3x 77W and today only has daily 788, 789, and 77E. I would guess more than 60% of capacity has been lost on this sector the past month.

I wouldn't be surprised if BA places 744 on BOM-LHR.