Jet Airways Ltd has agreed to sell its Dutch business to KLM.
In a statement issued on Thursday, the bankrupt Indian airline said the deal was made on 13 January.
Trade Air France-Klm - AFp CFD
Jet Airways is currently in the midst of an insolvency resolution process, after ceasing activities in April 2019 and filing for bankruptcy in June.
Once the country’s largest private airline, it failed to find a buyer and most of its services were redistributed to other Indian carriers.
At the time, KLM restarted international routes from India to London Heathrow and Amsterdam.
A first call for expressions of interest, announced back in July, resulted in just one from South American Synergy Aerospace. However, it failed to submit a valid business plan for the revival of the airline in time for the deadline.
If the conditional sale and purchase agreement, which is subject to several statutory and regulatory conditions, is finalised, the carrier says the transaction will only involve a sale of part of Jet Airways’ business activities. It has also made clear that the sale will not impact the company’s shareholding pattern.
KLM merged with Air France in 2004, with both continuing to operate as separate entities.
Jet Airways has not disclosed publicly what assets it holds in the Netherlands and what would be part of the deal. Jet Airways currently owes around $1.2bn (£900m, €1.08bn) to its creditors, a consortium of 26 Indian banks. Its operational liabilities are thought to be in excess of $3.5bn (£2.7bn, €3.2bn).