Anil Agarwal’s Volcan Investment pulls out of the race to acquire Jet Airways

Volcan Investment was one of the three companies that sent in expression of interest (EOI) for Jet Airways

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Jet Airways has many loyalists who are hoping that the company will be able to reverse its fortunes and make a comeback in the segment. However, there has been a massive blow to these plans with Anil Agarwal’s Volcan Investment backing out of the race.

Volcan Investment was one of the three companies that have sent in expression of interest (EOI) for Jet Airways. This news comes closely on the heels of Etihad Airways expressing that it would not be sending in EOI as they “unresolved issues concerning the Mumbai-based airline’s liabilities”.

In a statement Volcan Investment said,

The EoI for Jet by Volcan was exploratory in nature. On further evaluation and considering other priorities, we intend to not pursue this further. Jet Airways was the pioneer to open skies in India after Air India, created a world-class airline with the finest team and connected numerous global and domestic destinations. India is among the largest and fastest-growing aviation markets in the world.

Etihad too had come out with a statement earlier on Monday that reads as: 

Etihad remained engaged in the process, but despite the endeavours of everyone involved, there remained very significant issues relating to Jet’s previous liabilities.

For those unaware, Etihad Airways had picked up 24 per cent stake in Jet Airways back in 2013, when the airline was in dire need of finances. Etihad also mentioned that it has been “consistently and constructively sought and advanced solutions” to help Jet but given that is a minority stakeholder, it has only limited capacity to bring about change.

The other two companies that are still in the race are Panama-based investment firm Avantulo Group and Russian Fund Treasury RA Creator, which have up to September 12 to submit their bids.

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