Airline relaunching complicated but close, prospects promising: Jet Airways CEO
What's the story
Veteran aviation professional and the chief executive officer (CEO) of the revamped Jet Airways, Sanjiv Kapoor, expressed hope about soon relaunching their "fantastic" airline after nearly six months of announcing the revival plan. Although he didn't share the specifics, he talked about the airline's recruitment plans, prospects of India's aviation industry, and the scope for growth in an interview with Hindustan Times. Here's more.
Context
Why does this story matter?
Jet Airways ceased operations in April 2019 owing to mounting losses, debt, and dues. In June 2021, the National Company Law Tribunal (NCLT) accepted the Jalan-Kalrock Consortium's resolution plan after two years of protracted insolvency proceedings. Now, the airline is in the process of renewing its operating permit. The company is currently in talks with stakeholders, partners, and vendors regarding the Jet Airways relaunch.
Revival
Working carefully on contracts: Kapoor
Kapoor told HT that the airline's relaunch is taking a little longer than expected because they are trying to sign the "best possible" contracts regarding IT, distribution, ground handling, and engine and maintenance, apart from the aircraft contracts. He said it was the first time in the country that an airline was being revived. He said it is complicated, but they are "close."
Growth
The number of domestic passengers grew tenfold in 20 years
Talking about the growth in aviation in India over the last two decades, Kapoor called it nothing short of phenomenal. In 2000, the total number of domestic passengers was 1.37 crore, which increased to 6.14 crore by 2013—the year he entered the Indian aviation industry. Before the COVID-19 pandemic, the number of passengers had reached 14.3 crore in 2019.
Schemes
Lower VAT on ATF biggest boost to industry: Kapoor
Kapoor said the biggest boost for the industry was the states reducing the value-added tax (VAT) on aviation turbine fuel (ATF) in the last few years. Varying state to state, it earlier ranged from 25-30%, which was slashed to 5% and even 1% in some states. Regional connectivity schemes—such as Ude Desh Ka Aam Naagrik (UDAN)—have significantly raised the number of flights and passengers.
Background
He stepped into aviation industry in US in 1997
Notably, Kapoor began his airline career in the United States in 1997. He has previously served at SpiceJet as its chief operating officer and at Vistara as its chief strategy and commercial officer, TOI reported. Sanjiv Kapoor resigned as the president of Oberoi Hotels in March this year and took over his new role at Jet Airways 2.0 on April 4.