Five years ago, Jet Airways announced the temporary shutdown of its operations in April after 25 years of flying as a full-service airline.
The decision was made due to a cash shortage. Now, with the Supreme Court’s order for the airline’s liquidation, the chances of Jet Airways flying again have come to an end. This has led to the sale of its valuable assets.
Key Assets to be Sold
The most valuable assets in the hands of the banks are the eleven Jet Airways planes, currently parked at airports in Mumbai, Delhi, and Hyderabad. These include:
Mumbai Airport: Six aircraft, including three Boeing 777s, two Airbus A330s, and one Boeing 737.
Delhi Airport: Two Boeing 777s and one Boeing 737.
Hyderabad Airport: One Boeing 737 and one Airbus A330.
Banks estimate these aircraft could be sold for ₹1,000 crore to ₹1,500 crore, but the final value will be determined by the liquidator.
Other Assets and Cash
Apart from the aircraft, other valuable assets include:
1) Engines, auxiliary power units (APUs), aircraft parts, and ground equipment like generators, tow tractors, vehicles, compressors, coaches, and trolleys.
2) The Jet Airways brand name will also be up for sale.
3) Jet Airways owns half a floor in a commercial building in Mumbai’s Bandra Kurla Complex, valued at ₹245 crore as of June 2019.
4) Banks will also be able to access around ₹100 crore in Jet Airways’ bank account.
5) The Jalan-Kalrock consortium has deposited about ₹350 crore in cash, which will be available to the banks.
6) The Supreme Court has ordered the encashment of ₹150 crore from the performance bank guarantee given by the Jalan-Kalrock consortium.
Additionally, ₹200 crore deposited by the consortium in an escrow account will be confiscated as per the Supreme Court’s order.
