The Covid-19 pandemic has dealt a severe blow to the already grounded and insolvent Jet Airways. About 40 people who were a part of Jet’s asset preservation team were let go earlier this week. More than a year after its grounding, the airline has found no buyers and lenders are in a fix on how to proceed further. “We are not sure at this point on whether to call for fresh expressions-of-interest (EoI). A decision will be made by Monday,” a senior banker told FE after the committee of creditors’ (CoC) meeting on Wednesday.
Parties that were previously interested in reviving the airline have either backed out or moved too slowly. The lenders have earlier called for multiple rounds of EoIs. The last round was invited in February after the Russian government-backed Far East Development Fund had expressed interest in the airline. On the other hand, liquidating the airline at this juncture makes little sense with the aviation industry undergoing a crisis. With no serious buyers, the CoC last month decided to extend the resolution deadline by 90 days. The earlier 270-day deadline ended on March 15.
