In a win for the consortium fighting for Jet Airways, the National Companies Law Tribunal (NCLT) gave the green light for the airline’s revival plan submitted by London-based company Kalrock Capital and UAE’s businessman Murari Lal Jalan. The Director General of Civil Aviation and Aviation Ministry has been given 90 days by the NCLT to assign time slots and routes to the airline that was forced to shut operations in April 2019 due to increasing debts.
However, there is no solid information about the routes to be approved for Jet to fly. Further rounds of talks are required to ascertain the domestic and international routes allowed for the airlines to function. Historically, Jet Airways had nearly 700 time slots that permitted it to operate in busy airports like Delhi and Mumbai as well. Its suspension pushed Jet-allotted slots to other airlines.
Speaking about the possible date of resumption of the airlines, Ashish Chhawchharia, Partner – Advisory, Head – Restructuring Services, Grant Thornton Advisory appointed by the Kalrock-Jalan consortium said that by the end of this year, Jet will be back in operation. With 20 narrow-body aircraft and 5 wide body aircraft ready to fly in 20 routes, the airline’s routes will be decided within the next 90 days, he added.
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Though there is little hope of reviving old routes, Jet is still undergoing negotiation talks with authorities. Mr Chhawchharia said that the new runway to be started soon in Delhi along with the additional capacity to be available will aid Jet in getting back many of its old slots. With the majority of domestic flights, some might also fly international due to the airline’s strong brand value, he said.
As for the staff and crew of Jet, he said that they will re-employ those who remained loyal to the airline while recruiting any more new staff required as and when the airline expands.
Two months after its suspension, the NCLT had accepted the lender consortium’s insolvency petition against Jet Airways in June 2019. Headed by the State Bank of India, the resolution process for the airline has been going on since the past 2 years under the Insolvency and Bankruptcy Code (IBC).
The Committee of Creditors (CoC) of Jet Airways approved the resolution plan submitted by UK-based Kalrock Capital and UAE-based businessman Murari Lal Jalan, reigniting hopes for the revival of the debt-laden airline.
To re-establish the airline for full-service, the consortium of Kalrock and Jalan had proposed to repay bank, employees and financial institutions that Jet owes to. It has to repay Rs 8000 crore to banks.
