Adios Jetlink Express… Auctioneers move in on the beleaguered airline

Posted on October 5, 2015

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The last call on beleaguered airline Jetlink Express has been made.

Auctioneers have moved in to sell what remains of the once promising airline. Weighed down by debt, Jetlink Express had in 2012 announced a rather abrupt halt to its take off. Then, the airliner had insinuated that the South Sudanese government hit by cash crunch and its key customer had delayed payments. While this was the official line, insiders contended that the carrier was no longer able to fulfill its financial obligations. Key among the concerns were expensive aircraft lease agreements it had entered into as part of its expansion plans.

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Pic Courtesy of Business Daily

Faced with a litany of suits, the firm had in 2013 mooted an offer to creditors in terms of shareholdings. This however was not to be as its owner managers could not guarantee take off plans. These included listed commercial bank Equity Grou, erotech Limited, KenolKobil and Avmax Spares East Africap.

At the time Jetlink has requested them to write off Sh360M of the Sh554M it owed them. The proposal by Captain Aluvale, the owner of the airline was that they convert the remaining 35 per cent debt into preference shares — which he was tp buy back after five years, The Business Daily Reported.

Captain Alluvale was then fighting off a winding up petition. He even indicated in a sworn affidavit that he had secured capital injection from CfC Stanbic

In the latest twist, the taxman- KRA through Leakey Auctioneers has lined up a Forker 28 registration 5Y JLA and in good condition for sale at the fall of the hammer. Interested bidders will however have to pay a non refundable deposit of Sh1M. Another Forker 28 is also up for sale but as scrap. Other office items are also lined up for auction including conference seats and reception seats ‘among many other items.

Jetlink Express in its death has followed others before it. Fledgling Kenyan born carriers which do not live full term. Their collapse largely hinged on weak corporate governance,.

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