It’s been a few weeks since Jet Airways found a new owner willing to revive the carrier. Since then, the airline has been taking key steps to restart operations, including hiring new staff and making fleet decisions. However, a few key hurdles remain before Jet can start flying again. So will Jet Airways make a comeback?
Jet Airways’ first step to making a comeback would be to have its resolution plan approved by the NCLT, India’s bankruptcy tribunal. While creditors have accepted the Kalrock-Jalan consortium’s proposal, the NCLT must also agree since Jet Airways has been declared bankrupt. Once this is complete, the new owners can formally start the tough work of restarting the airline.
According to the Times of India, the new owners have offered $53.5mn (₹400 crores) as start-up capital, with another $87mn (₹650 crores) in the first year of operation. This $140mn cash injection will be key to Jet being able to finance its revival, which will require new staff, aircraft, and paying down debt.
The plan’s approval is expected in the coming weeks, and likely before the end of the year. Notably, Jet Airways is the first Indian airline ever to be referred for a revival under bankruptcy law.
The key to any successful airline is a strong leadership team. To this end, Jet’s new owners are reportedly considering veterans from IndiGo to lead the airline. According to Business Standard, former IndiGo CEO Aditya Ghosh, current COO and President Wolfgang Prock-Schauer, and other IndiGo officials are under consideration. We should know more about Jet Airways’ new leadership team soon.
13/11/20 Pranjal Pande/Simple Flying
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