Friday, June 04, 2021

Slots for Jet Airways will be based on existing norms, not historicity: Govt tells NCLT

Mumbai: Defunct Jet Airways, which is undergoing insolvency resolution for nearly two years, cannot claim "historicity" for slots at airports, and allocation of slots will be based on existing guidelines, according to an affidavit.

The civil aviation ministry and aviation regulator DGCA have also informed the National Company Law Tribunal (NCLT) that for claiming historicity, the criteria cannot be based on contention that airline was in operation for 25 years.

Jet Airways, which shuttered operations in April 2019, is undergoing resolution process under the Insolvency and Bankruptcy Code (IBC). The Jalan Kalrock Consortium has emerged as the winning bidder for the carrier and the resolution plan is before NCLT, Mumbai.

NCLT adjourned the hearing on Jet Airways case on Friday and the matter has been scheduled for hearing next week.

Last month, NCLT directed the ministry and DGCA to submit an affidavit clarifying their position on slots for Jet Airways.

In an additional affidavit, submitted to NCLT on Thursday, the ministry and DGCA said Jet Airways does not qualify for grant of slots on the basis of historic precedence and and the allocation will be based on slot allocation guidelines.

Citing the standard operating procedure with respect to slot allocations, it said slots were not reserved for Jet Airways.

"... it is submitted that there can't be any automatic revival of approvals granted to Jet Airways and reinstatement of slots, which were with Jet Airways and the same would be as per the extant guidelines and regulations/rules," the affidavit said.

All the slots were not allotted in one go and they were allotted in phases as per the aircraft and other crew availability plan and in some cases were even taken back from the airline due to non-utilisation. Accordingly, no airline was granted historicity over these slots, as per the affidavit.

04/06/21 PTI/Times of India

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