Jet Airways to Resume Ops in Q1 2022 – Closer Look at Airline's Road to Revival

London-based Jalan Kalrock Consortium, the winning bidder for Jet Airways has said that the airline will restart domestic operations, as well as short-haul international flights by the first quarter of 2022, and third and fourth quarter of 2022, respectively.

(Photo: PTI)

London-based Jalan Kalrock Consortium, the winning bidder for Jet Airways, has said that the airline will restart domestic operations, as well as short-haul international flights by the first quarter of 2022, and third or fourth quarter of 2022, respectively.

Previously known as India's biggest private carrier, Jet halted its operations in April 2019 owing to mounting debt and a lack of funds. Thousands were rendered jobless.

Jet Airways can finally look forward to being in the skies two years after all its operations were suspended. Here's all you need to know about the revival.

What Went Wrong With Jet Airways

On 17 April 2019, Jet Airways went into bankruptcy after failing to pay spiralling debt. It shut down as it ran out of cash to pay over 21,000 creditors seeking claims of $6 billion.

A month later, and SBI-led group of creditors filed insolvency petition before National Company Law Tribunal (NCLT).

In the absence of any bidder till 13 March 2020, Jet Airways sought more time from NCLT for the resolution process, which was accepted by the tribunal on 18 March 2020.

Sixteen months after becoming the first airline to be admitted under insolvency and bankruptcy code (IBC), the London-based Kalrock Capital-Murari Lal Jalan consortium won the bid for Jet Airways, giving the airline a chance of revival over a year after it was grounded.

The New Investors

Kalrock Capital was founded by Florian Fritsch, a European entrepreneur. The global financial advisory firm based in London has invested in real estate, venture capital and renewable energy.

Whereas, Murari Lal Jalan is a Dubai-based businessman who has investments in diverse sectors like real estate, mining, trading and FMCG. Jalan was brought in owing to his expertise as an Indian-origin investor with global experience.

Road to Revival

On 17 October 2020, the Committee of Creditors (CoC) approved the resolution plan of the Calrock-Jalan consortium. They had proposed an investment of Rs 600 crore, which would be paid to Jet’s creditors, in exchange for 90 percent stake in the defunct airline.

Following the CoC approval, the roadmap went on to be approved by the National Companies Law Tribunal (NCLT) on 22 June.

The approval came with the caveat that historic rights over airport landing slots will be determined by the Directorate General of Civil Aviation (DGCA).

What Jalan-Kalrock Have Said So Far

As per the Jalan-Kalrock consortium, Jet Airways had said that the process of reviving the grounded carrier is on track with the 'existing air operator certificate already under process for revalidation', BloombergQuint reported.

The report added that the investors are collaborating with the concerned authorities and airport coordinators on slot allocation, the required airport infrastructure and night parking.

Sudhir Gaur, the recently employed Acting Chief Executive, has stated that Jet will relaunch its services with its first flight from New Delhi to Mumbai.

Further, the airline, previously based in Mumbai, will now be headquartered in Delhi-National Capital Region, BloombergQuint reported.

“Our plan is to have 50+ aircraft in three years and 100+ in five years, which also fits perfectly well with the short-term and long-term business plan of the consortium. The aircraft are being selected based on competitive long-term leasing solutions," Jalan stated, as per BloombergQuint.

The Indian carrier has also hired over 150 full-time employees and aims to take another 1,000 employees onboard in FY 2021-22 across categories.

Jet airways will begin "with domestic operations on an all narrow-body aircraft fleet leased from major global aircraft lessors who have approached us, and with whom we continue to engage," Gaur added.