New Delhi: The resolution professional (RP) of Jet Airways has filed a revival plan recently approved by the committee of creditors with the National Company Law Tribunal (NCLT) to seek its clearance under the Insolvency and Bankruptcy Code. Once, and if, NCLT gives the go-ahead, it will be up to the winning consortia of Murari Lal Jalan and Florian Fritsch to pump in the funds required to get the airline flying again. Jet is the first Indian airline to be referred for resurrection under India’s bankruptcy law.
“Further to our letter dated October 17, 2020, informing about approval of resolution plan for Jet submitted by Murari Lal Jalan and Florian Fritsch by the committee of creditors (CoC)…, we hereby inform the RP of Jet has duly filed the resolution plan as approved by the CoC with the NCLT, Mumbai Bench, on November 5, 2020, in accordance with Section 30(6) of the Insolvency and Bankruptcy Code, 2016,” Jet’s RP Ashish Chhawchharia said in a regulatory filing to BSE Thursday.
The winning consort hope to have Jet back in the air early next year. Their ability to pump in funds and getting Jet’s slots given to other Indian carriers back will be a key factor in the airline taking to the skies again. While the airline had over 600 daily departures from and within India till late 2018, the consortium are seeking an assurance from aviation authorities about getting slots back as per requirement as Jet-2.0 ramps up operations.
The winning consortia, London-based Kalrock Capital and UAE businessman Murari Lal Jalan, are likely to initially put in Rs 400 crore and infuse about Rs 650 in all in the first year for Jet-2.0 to take to the skies again. Jet-I was grounded on April 18, 2019. In first 2-3 years, an investment of about Rs 2,000 crore will come from the consortia and cash flow is also expected to resume with ticket sales once the airline starts flying again. If things go as per plan, Jet-II could have a fleet of 65-70 aircraft in three years, of which a fourth will be wide body and the rest narrow body.
06/11/20 Saurabh Sinha/Times of India
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