NCLT approves Jalan-Kalrock consortium's plan for Jet Airways
What's the story
The National Company Law Tribunal (NCLT) on Tuesday cleared the resolution plan of Kalrock Capital and entrepreneur Murari Lal Jalan for the revival of the bankrupt Jet Airways. The NCLT has given 90 days to the Director-General of Civil Aviation (DGCA) and the Aviation Ministry to allot slots to the airline. Jet Airways' operations were suspended in April 2019. Here are more details.
Details
Plan includes dedicated freighter service, hubs in smaller cities
The Mumbai Bench of the NCLT on Tuesday approved Kalrock-Jalan Consortium's resolution plan for Jet Airways' revival. The revival plan reportedly included a dedicated freighter service and hubs in smaller cities beyond Delhi, Mumbai, and Bengaluru. Sources told NDTV that the issue of Jet Airways being assigned its old routes remains unresolved. More talks are required for determining its domestic and international routes.
Routes
Jet Airways to operate on 20 routes initially
Before its operations were suspended, Jet Airways had about 700 time slots, which have since been allocated to other airlines. Ashish Chhawchharia—Partner & Head, Grant Thornton India, appointed by the Kalrock-Jalan Consortium—said the routes will be decided within 90 days. Jet Airways will initially operate on 20 routes, with 20 narrow-body aircraft and 5 wide-bodied aircraft.
Background
Airline owes Rs. 8,000 crore to banks
Jet Airways was once India's biggest private carrier until it went into losses, losing business to its low-cost rivals. The airline's operations were suspended in April 2019 and it has since been undergoing the Insolvency and Bankruptcy Code (IBC). It owes over Rs. 8,000 crore in loans to banks, with significant exposure to public sector lenders.