* Jet Airways says 28 planes grounded for non-payment of dues
* Lenders, Etihad yet to approve restructure (Adds graphic)
SINGAPORE,
March 8 (Reuters) – FLY Leasing Ltd has grounded three planes on lease
to India’s Jet Airways Ltd and will take them back and redeploy them
elsewhere if the airline cannot gain approvals for a restructuring plan
this month, the lessor’s CEO said.
Jet
Airways on Thursday said another three aircraft had been grounded due
to its failure to make payments, taking the total number to 28, but it
has not specified the lessors involved.
The
grounding of nearly one-quarter of the airline’s fleet has led to the
cancellation of hundreds of flights and complaints from customers on
social media.
Several
major global aircraft leasing companies, including AerCap Holdings NV
and BOC Aviation have exposure to the financially troubled airline,
which has defaulted on loans and has not paid pilots, leasing firms and
suppliers for months.
“We
have grounded our aircraft, we have control over our aircraft, but we
have not terminated the leases and we are waiting for the airline to
approve all its restructuring with the State Bank of India,” FLY Leasing
CEO Colm Barrington told analysts on a results call on Thursday.
“If
that goes through at the end of the month, obviously, we will stay with
Jet. If they can’t get that done, then we’ll take our aircraft back and
redeploy.”
The
airline had three relatively young Boeing Co 737-800s on lease to Jet
Airways, which accounted for around 3 percent of FLY Leasing’s revenue,
he said.
Jet
Airways has outlined a draft to sell a majority stake to a consortium
led by the State Bank of India at 1 rupee, under regulations that permit
banks to convert debt to equity in a defaulting firm.
The
stake sale will be followed by an equity raising, debt restructuring
and the sale and leaseback of jets to help plug a $1.2 billion funding
gap, but the plan needs approvals from several stakeholders, including
major shareholder Etihad Airways.
(Reporting by Jamie Freed in Singapore; Additional reporting by Chandini Monnappa in Bengaluru; Editing by Stephen Coates)
* Aegean aims to raise up to 200 mln eur from sale
* Bond issue set for March 5-7
* Up to 147 mln euro to fund down payments for new planes
ATHENS, March 4 (Reuters) – Greece’s largest carrier Aegean Airlines will proceed with a sale of bonds on March 5-7 to raise up to 200 million euros ($226.86 million) for down payments on new Airbus aircraft and the construction of a new pilot training centre.
According to the public offering prospectus, about 30 percent of the issue will be allocated to retail investors, while 70 percent will go to “qualified investors”.
The seven-year bonds, each with a nominal value of 1,000 euros, will pay a semi-annual coupon. In Greece interest payments are taxed at 15 percent. Trading of the bonds on the Athens stock exchange will start on March 13.
Pricing will be determined via book building.
Aegean, a member of the Star Alliance airline group, will use 75 percent of the proceeds to partly finance down payments on new aircraft based on a deal with Airbus to renew its fleet of single-aisle planes and add capacity for future expansion.
Aegean picked Airbus in March last year for an order of up to 42 aircraft worth $5 billion in one of the biggest investments by a private Greek company since the country’s debt crisis erupted in 2010.
The down payments are due from the first quarter through to the last quarter of 2023 for new generation A320neo and A321 Airbus jets.
Deliveries of the new planes are expected to start in the first half of 2020 and conclude by the end of 2024.
Aegean has picked U.S. engine maker Pratt & Whitney to power the new A320neo aircraft and provide engine maintenance.
The carrier plans to use 14 percent of the proceeds or up to 27.5 million euros to build a new 12,000 square metre training centre with flight simulators for its flight crews at the Athens International Airport (AIA).
About 11 percent of the proceeds or up to 21.6 million will be used as working capital.
Piraeus Bank and Eurobank are the joint coordinators and bookrunners with Alpha Bank and Euroxx Securities the lead underwiters. Euroxx Securities was the issue adviser.
($1 = 0.8816 euros)
(Reporting by George Georgiopoulos; editing by Emelia Sithole-Matarise)
Feb
21 (Reuters) – India’s Jet Airways Ltd has approved a rescue deal by
the lenders of the carrier reeling under a net debt of 72.99 billion
rupees ($1.02 billion), but doubts linger over whether the bailout would
help it clear dues on time.
The resolution plan will make Jet’s lenders its largest shareholders and fix a near 85 billion rupee funding gap.
Jet has been steadily losing market share to its rival and low-cost carrier IndiGo, which is owned by InterGlobe Aviation Ltd.
The airline has also seen its share price suffer as it navigated through several negotiations with its lenders and shareholders.
Oct 18 – Report says Indian conglomerate Tata Group is in talks to buy stake in Jet. Jet calls report “speculative”
Oct 30 – U.S.-based Delta Air Lines Inc expresses interest to buy Jet stake from promoter Naresh Goyal and Etihad Airways
Nov 5 – Report says Tata aims to buy the 51 percent stake in the airline owned by Naresh Goyal, and Etihad Airways’ 24 percent stake, and merge Jet with Vistara
Nov 12 – Jet posts third straight quarterly loss
Nov 13 – Tata Sons begins due diligence to buy Jet, reports say
Nov 15 – Shares surge nearly 25 percent following reports that the debt-laden airline was nearing a rescue deal with Tata Sons; another report says the Indian government asked Tata to explore buying Jet
Nov 16 – Tata Sons says discussions on Jet is preliminary and no proposal has been made
Nov 22 – Independent director Ranjan Mathai resigns, citing rising pressure from other commitments
Dec 3 – Jet says it will stop providing free meals to most domestic economy class passengers from January
Dec 5 – Jet and Etihad Airways have been holding rescue talks with Jet’s bankers, sources tell Reuters
Dec 6 – Jet tells its pilot union it will clear all salary dues by April, a source tells Reuters
Dec 14 – Goyal’s penchant for control has come up as a major obstacle as the airline tries to negotiate a rescue deal, several people who have worked closely with him or known him over the years tell Reuters
Jan 2, 2019 – The airline says it has delayed payment to a consortium of Indian banks, led by SBI; ICRA cuts rating again
Jan 10 – Jet proposes to creditors that it will catch up with debt payments in arrears by September, and from April will meet debt payments as they come due, according to a document seen by Reuters
Jan 11 – Some aircraft lessors were prompted to explore taking back aircraft from Jet, people familiar with the matter told Reuters. Etihad is not “in any position to sink new equity into Jet at this juncture”, says a person familiar with Etihad’s position.
Jan 14 – Report states Goyal is likely to step down from the board and give up majority control
Jan 16 – TV channel reports that Etihad offered to buy Jet shares at a 49 percent discount and immediately release $35 million.
Jan 17 – Top creditor SBI says Jet’s lenders are considering a plan to resolve its debt issues, amid further reports that Goyal is willing to invest 7 billion rupees in the airline and pledge all his shares but wants to retain a 25 percent stake.
Jan 24 – India capital markets regulator says it has no “view” on relaxing norms for a Jet bailout
Jan 25 – Etihad appoints Alvarez & Marsal to conduct due diligence on Jet, sources tell Reuters
Jan 30 – Jet denies its aircraft had been grounded by GE Capital Aviation Services
Feb 1 – Jet agrees to most conditions set by Etihad Airways for a lifeline, a report says
Feb 8 – Airline grounds four aircraft after failing to make payments to lessors
Feb 14 – Jet’s board approves a rescue deal which will make its lenders its largest shareholders and fix a near 85 billion rupee funding gap
Feb 15 – Jet is seeking an $840 million bailout from shareholders and a state-backed fund, Business Television India reports
Feb 21 – International lessors have grounded more Jet Airways planes prior to potentially moving them out of India, as scepticism builds whether a state-led bailout of the carrier can clear their dues on time, sources tell Reuters
($1 = 71.2325 Indian rupees)
(Compiled by Arnab Paul and Chris Thomas in Bengaluru; Editing by Subhranshu Sahu and Rashmi Aich)
LONDON, Feb 15 (Reuters) – Thomas Cook has enlisted Credit Suisse, Morgan Stanley and Bank of America Merrill Lynch to explore the possible sale of its airline business, a source familiar with the discussions said.
The holiday company this month said it was willing to sell its profitable airline business to fund its fightback from losses racked up in 2018.
Credit Suisse, Morgan Stanley and Bank of America Merrill Lynch declined to comment.
Thomas Cook’s airline, which fared much better last year than the tour operator business, consists of Germany’s Condor and British, Scandinavian and Spanish divisions.
A sale of the airline unit, in whole or in part, would enable the company to invest more in its own hotels, improve its digital sales offering and drive further cost savings.
One banker said the enterprise value of the airline would be around 500-600 million pounds, a little more than the current market value of the whole company.
He added that Lufthansa, Ryanair and easyJet were all vying for bits of the airline business, but that no one wanted the whole unit, and that Thomas Cook had an ageing fleet which would need a massive investment programme to replace it.
Ryanair’s marketing chief said on Thursday that the Irish airline was not interested in any large-scale acquisitions but could vie for airport slots should they become available.
(Reporting by Alistair Smout Additional reporting by Pamela Barbaglia and Clara Denina in London and Arno Schuetze and Ilona Wissenbach in Frankfurt; Editing by David Goodman and Kirsten Donovan)
(Reuters) – Jet Airways Ltd, India’s biggest full-service carrier, has been under dark clouds for the most part of the past year, and several efforts are on to save the sinking airline.
While intense pricing competition, weak rupee and rising fuel costs have hurt Indian airlines like IndiGo owned by InterGlobe Aviation Ltd and SpiceJet Ltd, Jet Airways is in a league of its own.
Saddled with a debt of about 80.52 billion rupees ($1.14 billion) as of Sept. 30, Jet is desperately searching for a deal that could help mitigate its severe liquidity crunch. The airline has a market capitalisation of 28.81 billion rupees as of Friday’s close.
Here’s how Jet has fared:
May 3 – Jet shares fall 12.3 percent after InterGlobe Aviation reported a slump in net profit for March-quarter a day earlier
May 23 – Jet posts first quarterly loss in at least 12 quarters, says it has a negative net worth that ‘may create uncertainties’
Aug 1 – Media report says Jet asked employees to take an up to 25 percent cut in salaries as a part of a cost cutting measure
Aug 3 – Jet denies report that it cannot fly beyond 60 days, and dismisses conjecture of stake sale
Aug 9 – Airline defers board meet for first-quarter results
Aug 11 – After State Bank of India chairman says Jet’s loan is on the bank’s watch list, Jet says it is regular in payment obligations to all banks
Aug 13 – Airline reaffirms that it is considering various options to meet its funding requirements
Aug 15 – Report says U.S. private equity firm Blackstone Group LP is in talks to buy a stake in Jet’s frequent-flier loyalty programme JetPrivilege
Aug 20 – Sources tell Reuters that private equity firm TPG Capital is considering investing in Jet, but is not close to finalising a deal
Aug 27 – Jet posts loss for the June-quarter, says it will inject funds and cut costs by more than 20 billion rupees in two years
Sept 4 – Government plans relief package for airlines
Sept 6 – Jet says it paid salaries to 84 percent of its employees after reports emerge that pilots warned ‘non-cooperation’ over salary default
Sept 20 – Income Tax department conducts survey at Jet’s premises
• Over two dozen passengers on a Jet flight are treated for minor injuries after the plane loses cabin pressure
Oct 4 – Rating agency ICRA downgrades the company’s long term loans and NCDs, citing impact of steep increase in jet fuel prices, rupee depreciation, delay in implementation of liquidity initiatives
Oct 18 – Report says Indian conglomerate Tata Group is in talks to buy stake in Jet. Jet calls report “speculative”
Oct 30 – U.S.-based Delta Air Lines Inc expresses interest to buy Jet stake from promoter Naresh Goyal and Etihad Airways
Nov 5 – Report says Tata aims to buy the 51 percent stake in the airline owned by Naresh Goyal, and Etihad Airways’ 24 percent stake, and merge Jet with Vistara
Nov 12 – Jet posts third straight quarterly loss, chief executive officer Vinay Dube expresses confidence in overcoming current challenges
Nov 13 – Tata Sons begins due diligence to buy Jet, reports say
Jet executive says company is in talks with multiple parties for a stake sale in its loyalty program, and equity infusion in the airline
Nov 15 – Shares surge nearly 25 percent following reports that the debt-laden airline was nearing a rescue deal with Tata Sons; another report says the Indian government asked Tata to explore buying Jet
Nov 16 – Tata Sons says discussions on Jet is preliminary and no proposal has been made
Nov 20 – Tata Sons may go slow on Jet deal after some directors from Tata’s board expressed concerns, according to media reports
Nov 21 – The airline says news on Naresh Goyal, Etihad discussing merger of JetPrivilege with Jet Airways is speculative
Nov 22 – Independent director Ranjan Mathai resigns, citing rising pressure from other commitments
Nov 26 – Report says Naresh Goyal may hand over Jet Airways ops to Etihad Airways
Dec 3 – Jet says it will stop providing free meals to most domestic economy class passengers from January, in its latest move to cut costs and boost revenues
Dec 5 – Jet and Etihad Airways have been holding rescue talks with Jet’s bankers, sources tell Reuters
Dec 6 – Jet tells its pilot union it will clear all salary dues by April, and gives them schedule outlining when the payments will be made, source tells Reuters
Dec 7 – ICRA cuts Jet rating yet again, cites delays in implementation of the proposed liquidity initiatives by Jet’s management
Dec 14 – Goyal’s penchant for control has come up as a major obstacle as the airline tries to negotiate a rescue deal, several people who have worked closely with him or known him over the years tell Reuters
Jan 2 – The airline says it has delayed payment to a consortium of Indian banks, led by SBI; ICRA cuts rating again
Jan 10 – Jet proposes to creditors that it will catch up with debt payments in arrears by September and from April will meet debt payments as they come due, according to a document seen by Reuters
Jan 11 – Crisis talks between Jet and aircraft lessors have failed to ease a row over late payments, prompting some lessors to explore taking back aircraft, three people familiar with the matter tell Reuters. Etihad is not “in any position to sink new equity into Jet at this juncture,” says a person familiar with Etihad’s position.
($1 = 70.5090 rupees)
(Compiled by Arnab Paul and Chris Thomas in Bengaluru; Editing by Gopakumar Warrier)
HONG KONG (Reuters) – BOC Aviation Ltd said on Thursday it would buy six new Boeing 787-9 aircraft from Boeing worth a combined $1.7 billion (£1.2 billion) at list prices.
Asia’s second-biggest aircraft lessor, which had 491 aircraft as of the end of last year, said it expected to take delivery of the aircraft in 2018 and 2019. The deal will be funded through cash on hand, loans and borrowings.
The Singapore-based company, which is majority-owned by Bank of China, this month posted a better-than-expected 40 percent rise in full-year net profit on higher revenue and U.S. tax cuts.
