Jet Airways Revival on Track; All Set to Resume Domestic Operations in Q1 2022

Jet Airways is all set to resume its operations of domestic flights in the first quarter of 2022, Jalan Kalrock Consortium said on Monday. The international flights will start from the second quarter of the next year, the company added. The National Company Law Tribunal (NCLT) on June 22, approved the consortium’s resolution plan for Jet Airways. Jalan Kalrock Consortium has agreed to make a total cash infusion of Rs 1,375 crore in the grounded Jet Airways. This amount included Rs 475 crore that will be used for payment to stakeholders and financial creditors.

The process of revival of the grounded airlines is on track with existing Air Operator Certificate (AOC) is already under process for re-validation, said the company. The is working closely with authorities on slot allocation, required airport infrastructure and night parking, it further mentioned. The revival plan also included a dedicated freighter service and hubs in smaller cities beyond Delhi, Mumbai and Bengaluru.

On slots, the NCLT earlier said that the facts and circumstances would indicate that presently the slots cannot be restored to Jet Airways on a historic basis. “Keeping in view the purpose of insolvency resolution we trust that the authorities concerned including the Government of India shall take a holistic approach… in terms of the guidelines in allocation of slots as and when they are sought, so that the airline takes off the ground and possibly regain its lost glory,” it further added.

Jet Airways, once India’s biggest private carrier, has been undergoing a resolution process under the Insolvency and Bankruptcy Code (IBC) for two years since June 2019. The carrier shut its operations in April 2019.

Jet Airways Revival Plan:

Dubai-based businessman Murali Lal Jala and Karlock Capital Management Ltd. from London came to rescue the grounded airline with a Rs 1,375-crore plan. An amount of Rs 900 crore would be invested for capital expenditure and working capital requirements for smooth functioning of the airline, according to the order published by the tribunal. The assenting financial creditors would get Rs 380 crore. The amount of Rs 475 crore includes CIRP (Corporate Insolvency Resolution Process) costs.

There would be an upfront payment of Rs 185 crore to the financial creditors. Zero-coupon bonds worth Rs 195 crore would be issued to them and the lenders stand to have a 9.5 per cent equity stake in the airline, as per the tribunal.

About reliefs and concessions sought by the Jalan Kalrock Consortium, NCLT said the monitoring committee may approach the respective authorities and departments for such reliefs.

“The authorities concerned may favourably consider such applications as deemed proper under law, keeping in view the object of resolution of the corporate debtor as envisaged in the Code and various pronouncements of the Hon’ble Apex Court,” the order said.

(With inputs from PTI)

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