Indian court gives green light for Jet Airways revival

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Two years after it ceased operations due to insolvency, Mumbai-based air carrier Jet Airways India has received the National Company Law Tribunal’s (NCLT) approval to resume operations.

On June 22, 2021, the Indian Court gave a green light for Kalrock Capital and Murari Lal Jalan consortium to revive the collapsed Indian air carrier. According to Indian media, the NTCL gave 90 days for the airline to figure out the issue with the former company’s slots with a possibility to approach the Court for extension of the term if needed.

“They have to work together with the ministry officials and airports to obtain the slots. In some airports, it may not be possible to operate the exact same slots. […] If everything goes well, we can hope by the end of this year Jet Airways can fly again,” the Court-appointed representative Ashish Chhawchharia told Bloomberg.

Before the collapse in April 2019, Jet Airways had around 700 time slots allowing the air carrier to operate in and out of its hubs at Mumbai (BOM), Delhi (DEL), and Kempegowda airports (BLR). 

The airline went into bankruptcy having operated at loss for years. In March 2019, the company reported that it had grounded nearly 25% of its fleet due to unpaid leases for lessors. Before ceasing operations in April 2019, Jet Airways was owing around $6 billion for a total of 21,000 creditors. After suspension, the air carrier’s slots were relocated for other airlines.

However, the hope of the Jet Airways revival ignited in October 2020, when its creditors approved a bid made by the consortium of Indian entrepreneur Murari Lal Jalan and the UK-based asset management firm Kalrock to restart the defunct airline.

Speaking to the media in October 2020, the new owner shared expectations that Jet Airways operations could be restarted by July or August 2021.

 

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