Correction, authority now has determined Jet can reclaim slots 'in one flying season' or six months:https://www.reuters.com/article/us-jet- ... sinessNews
If Jet restarts, expect a legal fight. As the link notes, what are buyers buying?
Jet was losing money at prior service levels. I would be interested to know how that will turn around.
Aircraft now belong to leasing companies and banks. 5 months of default make that obvious.
However, the return of slots make starting a new airline with Jet's rights attractive. However there is an obvious counter. Buy Jet obligations for pennies and hold the process hostage until paid in full.
Lightsaber - you keep saying expect a legal fight. And you seem to agree with this. Why? The airlines rushing in know exactly what they are getting - temp slots. Shouldn’t rule of law matter over what the mob wants? Btw I think the deadline moving from July 15 to Oct actually buys Jet more time.
I agree with rule if law. Please show me what law forces the return of slots after Jet shuts down. The transfer was structured to return early, that isn't happening.
Indian bankruptcy law is too complex. That means the process will be stalled and thus no Jet revival is likely.
Do not mistake what I predict with what I want. I surpressed what I want to see what is likely.
The only way the slots can be reclaimed is by Jet per the agreement. So rule of law is knowing how to anticipate risk, in this case having to return slots. The rules are specific, the temporary slot holder keeps the slot until at least October 26th. If Jet restarts, Jet then may claim the slot otherwise the temporary holder keeps the slot.
Since I believe the slot holders can use the ambiguity of Indian bankruptcy law to prevent the restart of Jet, I consider it low risk. I also consider the process so rushed that the temporary operators agreed in writing to let their time using the slot holders count towards the slot for Jet. Thus creating legal ambiguity.
This isn't mob rule, it is big business. In big business it is who structures the deal to ensure they win the legal battle.
You assume airlines signed away their rights. I don't. I assume SpiceJet and Indigo have competent lawyers and are playing to win. If I were an executive at an Indian airline, it would be how I work through the imperfect legal system. I would prefer a clear legal code.
India's bankruptcy process is, in my opinion, mob rule instead of law. Jet should have been sold in October with investors getting zero. Instead, we are here.
I am for a restart to business. Temporary air lift is expensive. Unless airlines are compensated to give up slots, let us not pretend they won't work to their advantage.
If I can figure out how to keep the slots, a good lawyer will be more clever.
Bidders will be looking at the rapid expansion of SpiceJet and Indigo. The new Jet won't restart in today's 30% to 40% inflated airfare market, it will be after fares normalize 20% lower.
How would you get a restarted Jet's costs low enough? They failed to gain a revenue premium before and now all of their premium customers have been forced to try alternatives.
What aircraft will they fly? Jet was so deep in debt, everything was in hock! (Security for a loan).
The airlines rushing in know exactly what they are doing. They are filling a hole in the market. They will secure their position by contracts to ensure if they lose a slot, it cannot be used profitably.
It isn't being ok, it is playing to win. For some reason my friends no longer will play poker with me...
I'm a nice guy, but no one gets a free ride in business, cards, board games (but I set up rules so my kids win, e.g., in Monopoly all trades a child proposes the adult must accept, e.g. trade Boardwalk for a utility..), racket ball, rowing, etc. Play to win or go home. Life isn't fair. Believe me, as a divorced man in California, I know legal systems can be screwey.
IM messages to mods on warnings and bans will be ignored and nasty ones will result in a ban.