Budget 2018-19

  To invest Rs 260 crore for a 40% stake in low-cost airline Billionaire investor Rakesh Jhunjhunwa­la is investing over Rs 260 crore for a 40 per cent stake in a low-cost airline promoted by Vinay Dube, Jet Airways’ former chief executive officer. Dube has put in place a team of senior executives in commercial, engineering and finance roles, and negotiations are underway with both Airbus and Boeing for an aircraft order. The proposed airline christened ‘Akasa Air’ is scheduled to start next summer and have 70 aircraft in four years. Jhunjhunwala has already put in Rs 15 crore in the venture. The infusion was made earlier in the month and unsecured convertible debentures were allotted to his wife Rekha. Regulatory filings show that debentures would be compulsorily converted into equity shares of the airline immediately upon receipt of investment of Rs 247.5 crore from  Rakesh Jhunjhunwala  or his affiliates in the equity shares of the company within an agreed period. Jhun...

  The airline currently operates 37 of its total fleet of 53 Airbus A320 aircraft GoAir  is planning to add new routes as it prepares for an initial public offering (IPO). While the IPO size could not be ascertained, a media report on Thursday pegged it at around Rs 4,000 crore. The airline currently operates 37 of its total fleet of 53 Airbus A320 aircraft. A senior executive said new routes were under evaluation but the airline was already selling tickets for flights to new destinations, such as Amritsar, Dehradun, and Surat, on online portals. The route expansion comes ahead of a possible IPO. The airline is also strengthening its management and is looking to hire senior executives in finance, sales, and network management roles. Industry sources said the airline was working on listing plans and had hired merchant bankers and law firms for the share sale. A final decision would be taken by the Wadia group, which owns the airline.

  While Jet has admitted claims of over Rs 15,000 crore, the resolution plan consists of Rs 866 crore in upfront and deferred payment to creditors The Kalrock Capital-Murari Lal Jalan consortium has proposed to re-launch Jet Airways as a full-service carrier, with an initial investment of Rs 1,000 crore. It has initiated discussions with lessors and international airlines for contracts and partnerships. On Saturday, the committee of creditors voted in favour of the Kalrock-Jalan consortium over the FSTC-Imperial Capital combine. The winning bid attracted over 99 per cent votes, with lenders overwhelmingly voting for a revival instead of recovery through liquidation. While Jet has admitted claims of over Rs 15,000 crore, the resolution plan consists of Rs 866 crore in upfront and deferred payment to creditors. A portion of the sum will be used to cover insolvency resolution costs. Banks will also get a 9 per cent equity stake in the airline and an upside from the sale of aircraft. E...