Last ditch attempt to save debt-ridden Jet Airways under way

The great Jet Airways fire sale is under way.

Interested bidders for the beleaguered Indian airline are required to pay off its existing debt as part of any deal.

That is the condition set by the State Bank of India, which heads the consortium of lenders which effectively own the airline after the recent temporary bailout.

SBI is seeking bids for up to a 75% stake. Individuals with deep pockets as well as a consortium of up to three companies each may bid, according to the terms.

Bloomberg reports investment firms Blackstone and TPG Capital are among the suitors.

Current investor Etihad Airways also remains in the frame, and may bid to increase its current 24 percent stake.

There is some speculation Singapore Airlines, perhaps through its existing Indian joint venture Vistara, Lufthansa, and a Delta Air Lines-Air France-KLM consortium are also mulling a bid.

However they will all have to work quickly. The closing date for expressions of interest is April 10.

Jet Airways was not long ago India’s largest private carrier, but its current fleet has now dwindled to just 26 planes from 124 just three months ago, due to missed lessor payments.

It also owes millions in bank payments and salary arrears to pilots and mechanics.

The lenders said other options are on the table if the stake sale ‘doesnot  result in an acceptable outcome.’