Jet Airways seeks debt settlement before resuming scheduled flights in early 2022

The winning consortium of Jet Airways on Friday, December 17 said it wants to infuse funds in the airline and has approached the NCLT to fast-track implementation of the resolution plan approved by the insolvency court in June this year.

The consortium, in a statement, also said it plans to restart domestic operations at the earliest in 2022 as a full-service carrier.

The Murari Lal Jalan and Florian Fritsch consortium, which emerged as the winning bidder for Jet Airways after the completion of the resolution process under the Insolvency and Bankruptcy Code, said it wants to commence payments to all stakeholders including ex-employees, workmen, ticket claimants and lenders of Jet Airways as per the approved plan.

The consortium is ready with the required capital and has applied to the NCLT for the necessary approvals to start capital infusion in Jet Airways for further implementation of the plan approved by the tribunal in June 2021, it said.

In its latest filing before the National Company Law Tribunal (NCLT), the consortium has intimated December 22, 2021, as its plan “effective date” and sought to implement the plan as approved earlier, it said.

It added that the process of revalidation of its existing Air Operator Certificate (AOC) has been fast-tracked, saying that it was initiated in August itself, within days of receiving the NCLT approval.

Besides, the consortium said it is working closely with the relevant authorities and airport coordinators on slot allocation, required airport infrastructure, and night parking and is confident to get the initial slots required to commence operations in the Summer Schedule of 2022.

“We are excited to embark on the next phase of the revival of India’s most loved Airline. We at JKC await the Hon’ble NCLT’s decision on our last filing and look forward to recommencing operations of Jet Airways at the earliest.

The Consortium is ready with its investments and given the progress the team has made operationally since NCLT Approval in June 2021, we feel it is time to fund the company immediately for the revival of the business, without delay.

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.”

Murari Lal Jalan, Proposed Promoter and Non-Executive Chairman, Jet Airways

Consortium partner Fritsch said, “I am totally aligned with Jalan and his vision for Jet Airways…the decision to invest in Jet Airways has been well thought off by me and Jalan and we both feel that now is the time that next steps of plan implementation be complied with as per orders of the NCLT.”

Stating that the consortium teams are working tirelessly to ensure its revival, he said, “Jet Airways will commence its operations in 2022 with 6 narrow-body aircraft and reach over 100 aircraft fleet as a 5-year plan.”

For its larger restructuring program, the Jalan-Kalrock Consortium is in conversation with both Boeing and Airbus for an order of at least 100 narrowbodies, which is said to have a budget of around USD 12 billion.

The consortium is confident of receiving the AOC in the coming months and will start operations soon thereafter, it said, adding, “We are in regular touch with the DGCA and the Ministry of Civil Aviation to have Jet’s AOC revalidated and we thank the authorities for their continued support.”

Jet Airways has an existing AOC valid until 2023, which was only suspended in 2019 due to the financial health of the company then.

The current process taken up is towards removing the said suspension and therefore the time required for getting the AOC revalidated will be substantially lesser in comparison to obtaining fresh AOC by a new company, it said.

It also said the company has received more than 35,000 applications across job categories and the team is shortlisting candidates as per its business requirements.

Jet Airways 2.0’s new corporate office is in Gurugram and the consortium is looking for a bigger office in Delhi-NCR to house the entire team in one office.

It also said most of the senior management positions as per its approved organisation structure have been filled and the consortium will introduce the entire senior management team to all stakeholders soon.

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