Grounded airline Jet Airways is all set to resume domestic operations in the first quarter of 2022, whereas it will begin international operations in the second half of 2022. The airline in a statement said that the process of reviving the carrier is on track and the existing Air Operator Certificate (AOC) is already under process for revalidation.
Notably, the airline was grounded in April 2019 owing to mounting losses and is currently working closely with authorities and airport coordinators on slot allocation, required airport infrastructure and night parking. Following the news, the stock of Jet Airways surged 4.98% to trade at Rs 84.40 at 12.15 pm IST.
What Murari Lal Jalan said
UAE businessman Murari Lal Jalan, the lead member of the London-based Jalan Kalrock Consortium and the proposed non-executive chairman of Jet Airways, said, “Jet Airways 2.0 aims at restarting domestic operations by Q1-2022, and short-haul international operations by Q3/Q4 2022. Our plan is to have 50+ aircraft in 3 years and 100+ in 5 years which also fits perfectly well with the short-term and long-term business plan of the Consortium.”
He added, “It is the first time in the history of Aviation that an airline grounded for more than 2 years is being revived and we are looking forward to being a part of this historic journey.”
The Kalrock-Jalan consortium is believed to have offered Rs 1,183 crore as repayment over five years to financial creditors, employees and other staff of Jet Airways. It has also offered about a 9.5 per cent stake in Jet Airways and a 7.5 per cent stake in Jet Privilege to financial creditors. Major creditors include SBI, IDBI Bank, Yes Bank and Canara Bank.
NCLT cleared Jet Airways’ revival plan
In June, the National Company Law Tribunal (NCLT) approved the resolution plan for the airline submitted by the Kalrock-Jalan consortium.
After Jet Airways was grounded in April 2019 due to a severe financial crunch, an SBI-led consortium had referred it to the NCLT for resolution under the insolvency and bankruptcy code (IBC). The airline’s slots had been allocated to other airlines after it was grounded. The approval from NCLT marked the first step in what could be the return of India’s oldest and largest private airline.
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