Etihad Airways, TPG Capital and Indigo Partners — the potential investors for debt-laden Jet Airways — are having second thoughts on whether to bid for the struggling carrier, The Economic Times reported.
As per the report, there are many critical questions still unanswered, which includes the proposed debt-to-equity swap to lenders and the lenders’ reluctance to give any interim funding, a person familiar with the matter told The ET.
The investors started having serious doubts about the Jet deal after the government decided to allocate the airline's flight slots to competitors. The investors had internal discussions after the airline was grounded on Wednesday and whether there is any value left in it for a new investor, sources told the paper.
"More than 400 lucrative flight slots at the Delhi and Mumbai airports are being allocated to other airlines. It has been said they are being given on a temporary basis and will be given back once Jet resumes operations. The investors aren’t sure how easy it will be to regain those slots. Planes are being leased out too,” a person familiar with the matter told the newspaper.
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