Jet airways finally found new owners yesterday, reviving after 18 months since the airline stopped flying.
The airline’s committee of creditors has approved a revival plan submitted by a consortium of London-based Kalrock Capital and UAE businessman Murari Lal Jalan.
While financial troubles for Jet had started worsening two years back, India’s oldest private airline that started operating in May 1993 ran out of funds completely last year and had its last flight on April 18, 2019, — days short of its 26th birthday. Since then attempts were being made to somehow make the airline take to the skies again.
The airline may fly by mid next year if this JV(Joint Venture) is able to raise the required funds through a mix of measures like infusing equity of about Rs 1,000 crore; selling the six old planes owned by Jet to get a few new ones and offering equity to lenders.
Kalrock Capital is a London-based financial advisory and asset management firm.
A Kalrock Capital board member told CNBCTV18,“Our plan is to be a full-service airline. So we will start with domestic, we already have a route plan in mind for domestic, and will go international as well depending on the slot allocation.”
This suggests that airline will return as a full service carrier sticking to its roots.
Ashish Chhawchharia, resolution professional for Jet, said in a regulatory filing on Saturday: “…final resolution plans submitted by two resolution applicants were discussed by the committee of creditors (CoC) members… (and) put to e-vote… The e-voting concluded today (Oct 17) and the resolution plan submitted by Murari Lal Jalan and Florian Fritsch has been approved by the CoC…”
Once the airline will be cleared by NCLT, the winning consortium will start the process for Jet to take off again by raising required funds, getting back a fleet of airplanes and seeking return of the slots as per requirement.
For all the Jet airways lovers out there, it is a good news. What do you think? Will Jet airways be able to fly back? Let me know in the comments section below.