Jet Airways revival won't be as quick as expected
The NCLT would now give its order on February 22 whether or not to share the resolution plan of Jet Airways with its employees
As there is no sign of a quick fix to the Jet Airways issue, the Jalan-Kalrock consortium may have to rethink the revival plan for the airline. Initially, the plan was to get Jet 2.0 flying by April 2021. It looks like it may take three more months.
“The emphasis will be to control costs and generate cash flow at the earliest. The priority thus is to first start off with cargo operations, given that demand for freight, especially with India emerging as the vaccine hub, continuing to be robust," a senior executive from the industry told Moneycontrol.
In October 2020, the consortium had won the bid for Jet Airways. The plan was to relaunch the airline by the summer of 2021. It was essential to get the clearance from the National Company Law Tribunal (NCLT) by January in order to get slots for the summer schedule of airlines that is released by the regulator Directorate General of Civil Aviation (DGCA).
The Mumbai bench of the NCLT would now give its order on February 22 whether or not to share the resolution plan of Jet Airways with its employees.
Meanwhile, the State Bank of India (SBI) -- the airline's lead banker -- had filed an appeal with National Company Law Appellate Tribunal (NCLAT), asking it to direct the NCLT to expedite the approval process. In January itself, an association of engineers working in Jet Airways had filed an application to fasten the proceedings.
Jet Airways was grounded in April 2019. It was once India's largest private carrier and at its peak, it was also the most successful Indian aviation company in terms of international operations.
After months of arduous negotiations, the lenders of the airline led by the SBI in October 2020 had accepted a Rs 1,000-crore bid by a consortium comprising the London-based Kalrock Capital and Dubai-based entrepreneur Murari Lal Jalan to resuscitate the bankrupt airline.