Active Stocks
Mon Jun 24 2024 14:47:07
  1. Tata Steel share price
  2. 178.35 -0.83%
  1. State Bank Of India share price
  2. 832.70 -0.44%
  1. ICICI Bank share price
  2. 1,165.40 0.63%
  1. HDFC Bank share price
  2. 1,667.90 0.15%
  1. Power Grid Corporation Of India share price
  2. 332.75 2.13%
Business News/ Companies / News/  Jet Airways to start ops early 2022 after revalidation of AOP: Promoters
BackBack

Jet Airways to start ops early 2022 after revalidation of AOP: Promoters

Jet Airways has been grounded since 2019 due to bankruptcy under its founder Naresh Goyal
  • The Consortium, consisting of British firm Kalrock Capital and UAE-based entrepreneur Murarilal Jalan, said that it has approached the NCLT to fast track the implementation of the Resolution Plan
  • Jet Airways will commence its operations 'at the earliest' in 2022 with six narrow body aircraft after the revalidation of its existing Air Operator Permit (AOP), the airline's new promoters (Mint)Premium
    Jet Airways will commence its operations 'at the earliest' in 2022 with six narrow body aircraft after the revalidation of its existing Air Operator Permit (AOP), the airline's new promoters (Mint)

    NEW DELHI:Jet Airways (India) Ltd will restart operations at the earliest with six narrow-body planes in 2022 after the revalidation of its air operator permit, the airline’s new owners said.

    In a statement, the Jalan-Kalrock consortium, comprising British investor Kalrock Capital Management and UAE-based entrepreneur Murari Lal Jalan, said it has moved the National Company Law Tribunal (NCLT) to fast-track the implementation of its resolution plan.

    “The consortium wants to commence payments to all stakeholders, including ex-employees, workmen, ticket claimants and lenders of Jet Airways as per the plan approved by the NCLT in June 2021," it added.

    “In its latest filing before the NCLT, the consortium intimated 22 December as its plan ‘effective date’ and seeks to forthwith implement it as approved previously by the NCLT in June 2021."

    Jet Airways, which was led by founder Naresh Goyal for over 25 years, was grounded on 17 April 2019 as it ran out of cash.

    Last June, the NCLT approved the insolvency resolution plan submitted by Kalrock Capital and Jalan, paving the way for the revival of the airline.

    The consortium has proposed to pay 1,183 crore to creditors over five years from the proceeds of the sale of assets and cash flow. It will also invest 600 crore for the first two years to repay creditors.

    The new owners have also proposed to pay 131 crore, 193 crore, and 259 crore to financial creditors at the end of the third, fourth, and fifth year, respectively, from the airline’s cash flow.

    “We are aiming to start domestic operations at the earliest in 2022 as a full-service carrier and look forward to creating history with Jet Airways’ revival," Jalan said in the statement.

    “The decision to invest in Jet Airways has been well thought of by me and Mr. Jalan, and we both feel that now is the time that next steps of plan implementation be complied with as per orders of the NCLT," said Florian Fritsch, chairman, Kalrock Capital .

    According to the statement, the consortium is working closely with the relevant authorities and airport coordinators on slot allocation, required airport infrastructure, and night parking at key airports like New Delhi and Mumbai.

    “The company has received more than 35,000 applications across job categories and the team is shortlisting candidates as per its business requirements," it said.

    “Jet Airways 2.0’s new corporate office is in Gurugram and the consortium is looking for a bigger office in Delhi-NCR to house the entire team in one office."

    The resumption of Jet Airways’ operations has been delayed several times till date. Key issues like obtaining slots at key airports have been a challenge for the airline.

    After the grounding of the airline in 2019, the slots held by it at major airports like New Delhi and Mumbai were redistributed to other airlines.

    Lawyers representing the ministry of civil aviation and the Directorate General of Civil Aviation have argued that though the allocation of Jet’s slots to other airlines was temporary, they couldn’t be withdrawn from them without any legitimate basis.

    3.6 Crore Indians visited in a single day choosing us as India's undisputed platform for General Election Results. Explore the latest updates here!

    ABOUT THE AUTHOR
    Rhik Kundu
    Rhik writes about the Indian economy and its crucial indicators. He is constantly navigating corporates, decoding policies, and dabbling with everything in between.
    Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
    More Less
    Published: 17 Dec 2021, 06:57 PM IST
    Next Story footLogo
    Recommended For You