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Last Updated : Sep 19, 2019 04:25 PM IST | Source: Moneycontrol.com

Jet Airways revival | Synergy Group, Centre discuss flying slots; govt wants it to comply with FDI rules

Synergy Group will also send a team to evaluate Jet Airways’ assets, the report said. It has met the beleaguered airlines' lenders and presented a potential business plans, which entails downscaling its operations

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Jet Airways’ lone bidder Synergy Group met with government officials on September 18 to discuss revival of the sunken airline and recovery of its flying slots, reports The Financial Express.

Officials from the Civil Aviation Ministry met with Synergy Group representatives and sought information on compliance with foreign direct investment (FDI) norms. The government is concerned as the group is yet to find an Indian partner. Synergy’s legal team is looking for ways to resolve the concerns, the source added.

FDI norms stipulate up to 49 percent investment in a scheduled Indian carrier. This applies only to entities which direct own an airline. The permitted investment jumps to 74 percent if the entity is not a direct owner.

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Officials also assured the group that Jet’s slots would be relocated post-March, the article quotes sources as saying. The slots had been allotted to other airlines until March 2020.

Synergy Group will also send a team to evaluate Jet Airways’ assets, the report said. It has met the beleaguered airlines' lenders and presented a potential business plans, which entails downscaling its operations.

Moneycontrol couldn’t independently verify the report.

Jet Airways’ resolution professional have approached at least two companies for partnership, the report said, adding that the Synergy Group is also independently in talks with others.

Synergy Group is promoted by Bolivian-born German Efromovich, who in 2004 bought Avianca. The once bankrupt airline is now the second-largest in Latin America.

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First Published on Sep 19, 2019 04:25 pm
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