Good news for fans of Jet Airways as the revival plan submitted by a consortium of London-based Kalrock Capital and the UAE-based businessmen Murari Lal Jalan has been approved by the National Companies Law Tribunal (NCLT) on Tuesday, according to NDTV.
A source told Times of India:
The NCLT approval will be valid for 90 days from today, following which the airline will have to approach the tribunal again for an extension. This is the first airline to get an approved to restart operations under India’s Insolvency and Bankruptcy Code
The Mumbai bench of the NCLT has given the Directorate General of Civil Aviation (DGCA) and Ministry of Civil Aviation (MCA) 90 days from 22nd June to allot slots to the airline. The civil aviation regulator will make the final decision on allotment of slots.
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Jet Airways had about 700 time slots, allowing it to land and depart from congested airports such as Mumbai and Delhi. These slots, which were a major asset of Jet Airways, were temporarily reallocated to other airlines after Jet suspended operations in April 2019. The ministry has said that Jet will have to re-apply for these slots and the carrier may or may not be granted those slots.
A government official told CNBC-TC18 that the DGCA and civil aviation ministry would study the detailed order before deciding on slots. The process of allocating slots to Jet Airways will take time.
Mounting Debt has forced Jet Airways to suspend operations in April 2019. Since then, the airline has been undergoing a resolution process under the Insolvency and Bankruptcy Code (IBC). Then, in October 2020, the Committee of Creditors (CoC) of Jet Airways had approved the resolution plan submitted by a consortium of United Kingdom’s Kalrock Capital and the UAE-based entrepreneur Murari Lal Jalan.
The Kalrock-Jahan consortium had proposed to repay banks, financial institutions and employees and establish Jet Airways as a full service carrier.
Ashish Chhawchharia, the Grant & Thornton Resolution Manager appointed by the Kalrock-Jalan consortium, in an interview to NDTV, said that in order to get the airline flying, initially there will be 20 narrow-body and 5 wide-body aircrafts in Jet Airways’ fleet. A total of 20 routes will be started, to begin with.
Featured image by Airways Magazine
What do you think of Jet Airways? Do you think the airline will be able to restart operations? Let me know in the comments section below.