Ace Aviation, a Malta-based aviation company and part of the Challenge Group, has acquired another aircraft to secure a conversion slot scheduled for early February 2025. The company had been in a long-standing tussle with Jet Airways for the acquisition of three Boeing B777 aircraft. However, delays in finalizing the deal with Jet Airways have led Ace Aviation to look elsewhere for the necessary aircraft.
The acquisition was critical as Ace Aviation has several conversion slots starting in the first quarter of 2025, where passenger aircraft are converted into freighters. These slots are highly coveted and require the timely acquisition of assets. Michael Koish, Chief Investment Officer of Challenge Group, emphasized that the lack of cooperation from Jet Airways’ lenders and the airline’s successful bidder, the Jalan Kalrock Consortium (JKC), was the main reason for the delay. Ace Aviation initially aimed to finalize the Jet Airways deal by mid-2024 to meet the deadline for the conversion slots. Despite having signed a Letter of Intent (LOI) and injecting $5.6 million into Jet’s account two years ago, Koish stated that no significant progress had been made, with both parties dragging their feet.
This frustration has led Ace Aviation to acquire another aircraft from the market to meet its first maintenance, repair, and overhaul (MRO) slot. According to Koish, the process of procuring the new aircraft went smoothly, taking just three to four months, a stark contrast to the difficulties faced in dealing with Jet Airways and its lenders. The acquisition underscores how swiftly such deals can move when all parties involved cooperate effectively.
Koish mentioned that the second MRO slot, scheduled for later in 2025, still depends on closing the deal with Jet Airways. However, the ongoing disputes between Jet Airways’ lenders and the Jalan Kalrock Consortium further complicate the process. Currently, the State Bank of India (SBI) and JKC are embroiled in a legal battle in the Supreme Court. JKC has accused the lenders of pushing the company towards liquidation in order to maximize profits by selling the airline’s assets as scrap.
Ace Aviation’s move to procure another aircraft reflects its commitment to meeting its strategic goals despite external delays. The company remains hopeful that the Jet Airways deal will eventually close, allowing it to secure the assets required for its future conversion slots. Until then, Ace Aviation continues to seek alternatives to ensure its operations remain on track for the scheduled MRO slots in 2025.
