Little scope for Jet revival: Govt officials

NEW DELHI: The government sees little hope of a bidder emerging for debt-laden Jet Airways Ltd, two senior Finance Ministry officials said, even as thousands of employees plead with the government for a rescue.

Parties that had initially expressed interest in Jet,  which is saddled with roughly $1.2 billion of debt, have so far failed to make firm bids to bail it out, increasing the odds that it could soon face bankruptcy proceedings.

“There is little scope in the revival of Jet,” said one official, adding that if a bidder emerged, the government was still willing to return slots to the private airline. The slots have been temporarily given to rival airlines.

A second senior finance ministry official said it was only a matter of time before someone dragged Jet to the National Company Law Tribunal.

It will most likely be one of Jet’s creditors and not its lenders that do so, said both the officials who spoke on condition of anonymity.

“The banks have been advised to wait for the formation of the next government ... before taking any decision on Jet’s fate,” the official told Reuters.

Unions have been pleading with the government to ensure the airline is rescued. Last week, in a letter to the prime minister seen by Reuters, its pilots union urged the government to intervene and speed up the bid process for the airline and stop the deregistration of its aircraft by its lessors.

An official at ICICI Bank, which has to recover over 5.4 billion rupees ($78.17 million) from Jet, said the bank sees little chance of any recovery without the government coming up with a rescue plan.

“We largely think our money in Jet is gone,” he said.