Jet Airways plans to be back in business by early next year

New promoters have moved NCLT to fast-track implementation of resolution

Jet Airways (India) Ltd will restart operations at the earliest with six narrow-body planes in 2022 after the revalidation of its air operator permit, the airline’s new owners said.

Jet Airways, which was led by founder Naresh Goyal for over 25 years, was grounded on 17 April 2019 as it ran out of cash.(REUTERS)

In a statement, the Jalan-Kalrock consortium, comprising British investor Kalrock Capital Management and UAE-based entrepreneur Murari Lal Jalan, said it has moved the National Company Law Tribunal (NCLT) to fast-track the implementation of its resolution plan. “The consortium wants to commence payments to all stakeholders, including ex-employees, workmen, ticket claimants and lenders of Jet Airways as per the plan approved by the NCLT in June 2021,” it added.

“In its latest filing before the NCLT, the consortium intimated December 22 as its plan ‘effective date’ and seeks to forthwith implement it as approved previously by the NCLT in June 2021.”

Jet Airways, which was led by founder Naresh Goyal for over 25 years, was grounded on 17 April 2019 as it ran out of cash.

Last June, the NCLT approved the insolvency resolution plan submitted by Kalrock Capital and Jalan, paving the way for the revival of the airline.

The consortium has proposed to pay ₹1,183 crore to creditors over five years from the proceeds of the sale of assets and cash flow. It will also invest ₹600 crore for the first two years to repay creditors.

The new owners have also proposed to pay ₹131 crore, ₹193 crore, and ₹259 crore to financial creditors at the end of the third, fourth, and fifth year, respectively, from the airline’s cash flow. “We are aiming to start domestic operations at the earliest in 2022 as a full-service carrier and look forward to creating history with Jet Airways’ revival,” Jalan said in the statement. After the grounding of the airline in 2019, the slots held by it at major airports like New Delhi and Mumbai were redistributed to other airlines.