Jet Airways Cleared for Takeoff

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Jet Airways, India’s oldest private airline, will take to the skies by the end of the year. The National Companies Law Tribunal (NCLT) approved the airline’s revival plan last Tuesday (June 22, 2021).

However, the issue of slot allotment is yet to be sorted out between airline management and the Director-General of Civil Aviation (DGCA). As per the tribunal’s order, the airline has to announce new routes within the next three months.

The new owners of Jet Airways are a consortium lead by the London-based Kalrock Capital and an UAE-based businessman Murari Lal Jalan.

Jet Airways Financial Issues Persist

The airline had closed down its operations in April 2020 due to a severe scarcity of funds and an accumulated debt of $1.2 billion. The key lenders were State Bank of India, Yes Bank, Punjab National Bank, IDBI Bank, and Canara Bank.

There is no official announcement of the financial restructuring plan. State Bank of India – the lead creditor has claims worth up to INR 7460 crores (USD 1 billion). Then there are other claims from employees and operational suppliers. It would be a complex financial settlement.

The existing fleet of eleven aircraft has been grounded for over a year. These consist of B737s, A330s, and B777s aircraft. The airline has indicated that it would not use these old aircraft, instead, it would be leasing twenty newer narrow-body aircraft to begin operations.

A government spokesperson said that they would study the order.

In a statement published in Bloomberg Quint, Martin of Martin Consulting says –

Jet Airways was what it was because of Naresh Goyal. It took him roughly 15 years to build the brand and to command the kind of respect he commanded in the aviation space. For the new owners, who also do not have any aviation experience, it is likely to take a long time to get Jet Airways back in shape.”

We hope to see Jet Airways flying again soon. Your views are always welcome.