Wednesday, July 05, 2023

India's DGCA plays hardball with re-issue of Jet Airways AOC

India's Directorate General of Civil Aviation (DGCA) will only re-issue an air operator's certificate (AOC) to Jet Airways once it resolves disputes with lenders and provides proof of its financial capabilities, according to India's Hindu Business Line.

Jet Airways' AOC lapsed in May. The report says the DCGA will only re-issue one if the airline can lock in senior management and reconstitute its board, resolve legal disputes, including those with lenders, and secure aircraft lease agreements. Since losing its AOC, Jet Airways has reportedly approached the DGCA seeking a new one.

Jet Airways ceased operations in April 2019 owing around INR80 billion rupees (USD975.5 million). In October 2020, a vote by the committee of creditors approved a bid by Murari Jalan and Florian Fritsch to buy the airline. The new owners planned an imminent restart, which was contingent on them paying creditors (including banks) around USD0.10 on every dollar owed and pumping almost INR10 billion (USD122 million) into recapitalising Jet Airways over five years.

However, the agreement has since collapsed into a mire of recriminations and legal disputes, with the airline no closer to restarting. The saga has generated plenty of headlines in India but has recently been overshadowed by the Go First (G8, Mumbai International) insolvency. That airline is also attempting to restart. But, as the DGCA points out, Go First's restart currently has the backing of lenders, while the Jet Airways restart does not.

05/07/2023 ch-aviation

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