Tuesday, December 21, 2021

Jet Airways Seeks Debt Settlement Ahead Of Planned Flight Relaunch

The new owners of Jet Airways want to restart operations early next year and have approached the relevant authorities, requesting to fast-track the debt settlement process. In order to commence domestic operations, the Kalrock-Jalan consortium wants to start clearing the payments due to various stakeholders, including ex-employees and ticket claimants, and complete other formalities ahead of flight relaunch.

In June, the National Companies Law Tribunal (NCLT) approved the insolvency resolution plan of Jet Airways, allowing the carrier to restart its revival process. Saddled with heavy debt, the consortium plans to gradually pay off creditors over the next few years.

The carrier has approached the NCLT again and, in its latest filing, has informed December 22, 2021, as the “effective date” when they want to start implementing the plan, which was approved back in June.

The consortium wants to infuse funds into the carrier to start the resolution process in order to commence operations without any further delay. Murari Lal Jalan, lead member of the consortium and proposed promoter and Non-Executive Chairman of Jet Airways said, “The Consortium is ready with its investments and given the progress the team has made operationally since NCLT Approval in June 2021, we feel it is time to fund the company immediately for the revival of the business, without delay. We are aiming to start Domestic Operations at the earliest in 2022 as a Full-Service Carrier and look forward to creating history with Jet Airways revival.”

The Jet Airways team is hopeful of clearing all other hurdles in time for an early 2022 relaunch. One of the first things that Jet needs is a valid Air Operator Certificate (AOC). The company has been working for months to get the certificate revalidated and thinks that the process should be completed soon.

Jalan pointed out that Jet is not applying for a fresh AOC but instead reviving the carrier’s existing AOC, which is valid until 2023 and was suspended in 2019 due to the company’s financial woes. He feels the time taken to remove the suspension will be substantially less compared to applying for a new one

Then there are the slots. Jet commanded a substantial hold on airport slots in the country at the peak of its operations, but that has since changed. The airline faced a setback this year when India’s aviation regulator, the DGCA, declined its request to reclaim old slots, which have since been redistributed to other airlines. But the consortium is currently engaged in several discussions with key airports and is hopeful of getting the required slots before the summer schedule next year.

21/12/21 Gaurav Joshi/Simple FLying

To Read the News in full at Source, Click the Headline


Post a Comment