Jet Airways has acquired ownership of six Boeing aircraft and its engines against a bullet payment of $13,000,000. Its lessor, Fleet Ireland, had held back these six aircraft against dues. Jet has acquired the aircraft from the funds raised by selling its office building at BKC, Mumbai. The building was purchased by Brookfield Asset Management for Rs 490 crore.
Jet was grounded on April 18, 2019, over unpaid dues and was soon dragged to the NCLT by its lead lender. Earlier this week, Jet also announced its Q4 FY19’s results. In its 80-page-long results copy, it stated that Jet’s losses had increased significantly, from a loss of Rs 766.13 crore reported in FY18, to a loss of Rs 5,535.75 crore for FY19.
Meanwhile, its creditors are vetting the resolution plans submitted by two bidders — a consortia of UK-based financial advisory company Kalrock Capital and a UAE-based entrepreneur Murari Lal Jalan and a consortium of Haryana-based Flight Simulation Technique Centre, Mumbai-based Big Charter and Abu Dhabi-based Imperial Capital Investments LLC, respectively.
The Mumbai bench of NCLT has set August 31 as the deadline to complete the CIRP process of Jet.
Jet Airways share price closed higher on Friday after the cash-strapped domestic carrier announced it has acquired six Boeing aircraft and their engines.
Jet Airways has purchased six Boeing aircraft and their engines against a lump sum payment of $13,000,000. The company has raised funds from the sale proceeds of its Bandra-Kurla headquarters in June.
Jet Airways share price earlier today opened with a loss of 4.84%. However, the share erased early trend within minutes and hit upper circuit of 5% to an intraday high of Rs 29.25 on BSE against the last close of Rs 27.90. The stock has traded in a wide range of Rs 2.7. Stock price of Jet Airways, that suspended operations in April 2019, ended 4.84% higher at Rs 29.25 on BSE.
Jet Airways shares stand higher than 20, 50, 100 and 200-day but lower than 5-day moving averages.
A buyout option was exercised whereby the company made payment of USD 13,000,000 to acquire ownership of six aircraft and engines, as per the filing. “One of the end-uses contemplated by the NCLT order is that the company would exercise its buyout option under six different aircraft leasing arrangements, originally entered into in the year 2007,” the filing added.
The company, that is currently undergoing insolvency proceedings reported a loss of Rs 5,535.75 crore for FY19 on Wednesday, compared to loss of Rs 766.13 crore it reported for FY18. The airline’s total income declined by 2.6% YoY to Rs 23,314.11 crore from Rs 23,958.37 crore in the year-ago fiscal.
