Monday, December 07, 2020

If all goes well for Kalrock-Jalan consortium, Jet Airways could resume operations by summer next year

The consortium of Gulf-based businessman Murari Lal Jalan and London’s Kalrock Capital Monday said it aims for defunct airline Jet Airways NSE 4.97 % to resume operations by the summer of 2021.

The airline will retain the Jet Airways brand.

“As per the resolution plan, Jet Airways intends to operate all of its historic domestic slots in India and restart international operations. If everything goes as per plan and the Consortium receives the NCLT and regulatory approvals on on time, Jet Airways would be back in the skies by the Summer of 2021,” said a statement.

The resolution plan of the consortium was recently approved by Jet’s committee of creditors. It still awaits approval from India’s bankruptcy court the National Company Law Tribunal (NCLT).

The resolution proceedings went on for more than a year before Jet found new investors in the Jalan-Kalrock consortium. Jet stopped operating in April last year starved of cash and burdened by debt and dues. The NCLT admitted its case in June.

“The Jet 2.0 hubs will remain Delhi, Mumbai, and Bengaluru like before. The revival plan proposes to support Tier 2 and Tier 3 cities by creating sub-hubs in such cities,” said the statement.

The consortium plans to start a dedicated air freight service under Jet.

According to the resolution plan, the new investors in Jet have proposed the infusion of Rs 1,000 crore into the airline over the next 5-7 years, with lenders getting a deal that offers not significantly more than the liquidation value of the grounded carrier.

Lenders to Jet Airways will get 9.5% and 7.5% stakes, respectively, in the airline and its passenger miles company. They will will take close to a 90% haircut on their exposure.

07/12/20 Anirban CHowdhury/Economic Times

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