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Air Canada looking to buy Jet Airways?


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Assisterons nous à la naissance d’un groupe international de lignes aériennes basé au Canada? 

https://www.thehindubusinessline.com/money-and-banking/air-canada-is-dark-horse-in-race-for-jet-airways/article26798980.ece?utm_campaign=amp_article_share&utm_medium=referral&utm_source=whatsapp.com

 

SBI extends deadline for EoI to tomorrow

Air Canada has emerged as the dark horse in the race to acquire Jet Airways. The Canadian airline, along with Etihad, is among the top contenders for the debt-laden Indian airline.

Heartened by the interest from these foreign carriers, State Bank of India, the lead lender to Jet Airways, on Wednesday extended the deadline for Expression of Interest to April 12.

“The earlier deadline was set for April 10 but some of the international airlines that are interested asked for more time. There are more than two investors who are interested in putting in a bid,” said a top source.

According to another source, Air Canada has sent a written application to the state-run bank seeking an extension.

According to one of the persons cited above, “Since Air Canada is an overseas airline and there is a time difference with India, the airline needs time for due diligence. The lenders have agreed to give an extension.”

Malaysian carrier Air Asia and Tata Sons joint venture Vistara are also understood to be among those who have sought a clarification from lenders. Jet Airways’ current joint venture investor Etihad Airways had also confirmed its interest in bidding for the beleaguered airline.

After April 12, lenders will examine the eligibility of all those who have expressed interest. Thereafter, the eligible bidders will have to sign a non-disclosure agreement (NDA) after which the company will be given some time to examine the books of the airline. “The qualified bidders will be expected to submit their respective binding bid(s) latest by April 30 subject to the terms set out under the bid document,” SBI Capital Markets said in a notice posted on its website.

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Il me semble avoir entendu récemment que le segment Amérique du Nord - Inde est un des plus sous-exploités et avec le plus de potentiel. Air Canada a commencé à s'y intéresser récemment, mais a dû mettre fin à un de ses vols directs (vers Mumbai) par manque de rendement. Peut-être que ce genre d'achat leur donnerait accès à des plages horaires intéressantes et à un marché de correspondance leur permettant de faire de Vancouver/Toronto la porte d'entrée vers l'Inde pour l'Amérique...

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4 minutes ago, helios_the_powerful said:

Il me semble avoir entendu récemment que le segment Amérique du Nord - Inde est un des plus sous-exploités et avec le plus de potentiel. Air Canada a commencé à s'y intéresser récemment, mais a dû mettre fin à un de ses vols directs (vers Mumbai) par manque de rendement. Peut-être que ce genre d'achat leur donnerait accès à des plages horaires intéressantes et à un marché de correspondance leur permettant de faire de Vancouver/Toronto la porte d'entrée vers l'Inde pour l'Amérique...

Sur mon vol en provenance de Tokyo en janvier, environ le tiers était en correspondance de l'Inde. J'étais surpris, surtout que Montréal était la destination finale pour la plupart.

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Il y a vraiment beaucoup de gens d'origine Indo-Paskitanaise au Canada, ça me surprend aussi qu'on ait pas plus de vols directs. L'autre jour j'attendais mes bagages à Toronto, sur le même carrousel qu'un vol arrivant de Canton, et j'ai dû compter au moins une trentaine de passeports indiens (c'est un bon 10% de l'avion quand on y pense). Il y a clairement une dispersion de cette énorme clientèle et je présume qu'AC veut la "recentrer".

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^

Canada-India, although huge, is a very low yielding market, hence so few non stop flights. Add to that the length of the flights involved, especially now with the Pakistani airspace closure, and you understand the challenges that AC faces on these routes.

AI pulled out of Canada years ago. Last year, AC converted YYZ-BOM to seasonal. Clearly, the route didn't meet expectations on a year round basis.

Also, due to additional costs involved with flying around Pakistan, AC will be cancelling YYZ-DEL from mid-June to mid-July. 

Just goes to show you the fragility of the Canada-India market, and how a small hiccup (such as Pakistan closing its airspace for overflights) can negatively impact long and thin routes.

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India is the fastest growing air market; Jet Airways is in a financial crisis and is in serious need of new capital/a new owner; The current majority shareholder, the State Bank of India, has expressed its desire to sell. 

This looks much more like a business rationale rather than a network optimization goal. 

My question is what would happen with Air India and Star Alliance if such a transaction occured. 

 

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C’était Air India qui faisait la liaison Toronto-Montréal-Londres-Delhi-Bombay, opéré par un Boeing 747-200. Le 23 juin 1985, le vol 182, liant YMX et LHR, a explosé en plein vol, près de l’Irlande. Un terrible attentat et une tragédie sans précédent.

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On 17 April, Indian airline Jet Airways suspended all domestic and international flights after failing to find fresh funding. Professor Loizos Heracleous, an expert in the aviation and aerospace industries and professor of Strategy at Warwick Business School comments on the airline’s failure.  

 

https://www.aviation24.be/airlines/jet-airways/analysis-intense-competition-means-weak-airlines-like-jet-airways-will-be-weeded-out/

https://www.aviation24.be/airlines/jet-airways/bankruptcy-administration-insolvency-liquidation-suspend-its-operations-today-after-lenders-reject-call-for-funds/

 

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