Air India seeks to bid high
India’s state civil aviation minister V K Singh said that bids for Air India are likely to be seen by September 15. The two big bidders for this Indian airline are Tata Group and Spicejet. For years now, Air India has been sinking into debt and loss. In early 2020, the Modi government planned for Air India’s privatisation and sell Air India’s stakes to rise above loss. Recently, the Indian government revealed that Air India has sold 115 properties worth Rs 738 crore since 2015.
GMR, Groupe ADP shake hands over the joint deal
The Indian aviation conglomerate, GMR Group announced its ‘industrial partnership’ with the Paris- based company Groupe ADP through a press release. This partnership will help both the companies to outsource each other’s services and improve passenger experience and airlines. The partnership will also focus to strengthen synergies, engineering, information technology, operations, project management, design.
Investor tycoon seeks opportunity in aviation
Big bull Rakesh Jhunjhunwala bets on a new low-cost airline, Akasa, in partnership with Aditya Ghosh, former president of IndiGo. Jhunjhunwala seeks to launch 70 aircraft in India in the next 4 years. In a Bloomberg interview, Jhunjhunwala revealed an investment of $35 million behind the airline and would own a 40% stake in the carrier’s stake.
SpiceJet, Boeing in clash overcompensation
Spice Jet wants the American aircraft manufacturer to compensate for the loss of revenue it incurred in its yearly earning result. The inconvenience was caused due to delay and grounding disruptions. After Boeing’s two fatal crashes – Ethiopian Airlines and Lion Air flight – the company faced a global grounding of its aircraft. Indian budget-carrier claimed an amount of Rs12.3 billion from Boeing for not being able to fly its 13 MAX aircraft. Interesting fact, SpiceJet is the only Indian airline operating the MAX.
Baby steps by Indian MoCA
To address the matters arising due to pandemic, Jyotiraditya Scindia formed three advisory groups to assess the concerns in Indian aviation. The three advisory groups are – Airlines, Airport operators and MRO (Maintenance, Repair and Operations), Cargo carriers, FTOs and ground handling companies. These groups will meet regularly and look upon the challenges faced by each sector.
SpiceJet promoter to raise $1 billion for Air India bid
India’s low-cost airline Spice Jet’s promoter, Ajay Singh, kept $1million aside to use it in the war of bids for Air India. This bid will be made by a Special Purpose Vehicle (SVP), including two US-based funds. In addition, Singh will gather the stakes of his cargo business to raising $300 million for the bid.
Adani takes over from GVK
The flagship holding company Adani Airport Holdings Limited (AAHL), backed by Adani Group, in a press release revealed that it has taken over the management of Chhatrapati Shivaji International Airport. Adani Group will have a 74% stake in the Mumbai international airport. GVK is said to buy 50.5% of the stock.
“Our airport expansion strategy is intended to help converge our nation’s Tier 1 cities with the Tier 2 and Tier 3 cities in a hub and spoke model”, said Gautam Adani, Chairman of Adani Group.
Jet Airways owes each employee in bulk
India-based defunct airline Jet Airways owes each employee a bulk amount of nearly 3 lakhs to 85 lakhs, as per the insolvency resolution policy. The revival plan suggested by Kalrock-Jalan, new owners of the airline, proposed a sum of Rs 23,000 to each employee. Prior, the National Company Law Tribunal (NCLT) cleared the resolution plan. The resolution plan states that only if 95% of Jet employees agree to the plan in the next three months.
Adani’s plan to raise offshore loans for MIAL
Adani Group plans to raise more than $1 billion through offshore loans to refinance Mumbai International Airport Ltd (MIAL). Group is in talks with international firms like Deutsche Bank, JP Morgan, Barclays.
Do it quickly in a year, or go home
For Jet Airways to be back in the game and start flights, London’s Kalrock and UAE’s Murari Lal Jalan will need to deposit an amount of Rs 600 crore within a year. The amount is to be deposited in two instalments: in the first six months, the two new entries are required to pay a sum of Rs 350 crore and another Rs 250 crore within the last six months.