The Chief Investment Officer of Challenge Group, parent entity of Ace Aviation, says if it cannot buy three B777-300ERs belonging to Jet Airways (JAI, Mumbai International), it will have to reconsider its attempt to enter the Indian market.
In 2022, various ACE Aviation Group entities, Ace Aviation VIII Limited, Ace Aviation IX Limited, and Ace Aviation X Limited, signed a deal with the Jet Airways monitoring committee overseeing the sale of Jet Airways to buy three parked B777s. Jet Airways stopped flying in 2019.
The Ace entities paid an agreed deposit of USD5.6 million and signed letters of intent. However, in November 2022, the monitoring committee paused the sale process because not all members would agree to it, with the would-be buyers of Jet Airways, the Jalan Kalrock Consortium (JKC), against it despite previously not objecting. The matter has been the subject of litigation ever since.
In March 2024, the Supreme Court of India said it would not interfere with earlier National Company Law Tribunal and National Company Law Appellate Tribunal decisions to allow the sale of the three aircraft. Despite this, the aircraft are yet to be handed over.
"We have faith in the Indian judicial system, and we need the cooperation of other parties to finalise the deal," Challenge Group CIO Michael Coish told the Hindu Business Standard. "However, despite our significant investment and efforts, if the deal does not happen, we will have to reconsider whether India is the right market for us."
Coish said that the Challenge Group has secured conversion slots for the aircraft in early 2025, and any delays would be problematic. "If this delay in procurement extends beyond our estimated timeline, we will have to immediately look for alternative aircraft," he said. "We have already contacted some potential vendors to explore the related B777-300 ER opportunities in the market."
It is the second time in two months Coish has voiced his concerns on the matter. "We have now decided enough is enough," ch-aviation recently reported him saying. "If the monitoring committee, including the lenders and JKC who have attempted to block the sale, continue to procrastinate, we would sadly walk away from this deal and take our USD5.6 million back with full interest."
