Jet Airways’ revival plan awaits key court approval

Dubai: India’s top bankruptcy court will take the final call on the Rs10 billion revival plan for the defunct Jet Airways proposed by a consortium led by a UAE-based investor after a hearing on January 25.

While creditors of the grounded airline have accepted the resolution plan offered by Murari Lal Jalan, a relatively low-profile UAE businessman, and Kalrock Capital, London-based investment fund, the move requires the final go-ahead from the National Company Law Tribunal, or NCLT.

Jalan is an entrepreneur with investments in the UAE, India, Russia and Uzbekistan among others.

The debt-ridden Jet Airways, India’s largest private sector airline with 16,000 employees, was forced to stop operations in April 2019. Abu Dhabi’s Etihad Aviation Group holds 24 per cent of Jet Airways which reportedly owes more than $3 billion to lenders, lessors, staff and other suppliers.

Aviation industry sources said the hearing would clear the way for the consortium to take control of Jet Airways and start the process of re-launching the carrier. The hearing could also clarify the status of Jet’s domestic and international slots.

Punjab National Bank, one of the creditors of the airline, has challenged the revival process. The NCLT will also hear the views of representatives from the Aviation Ministry and the regulator, the Director General of Civil Aviation, on the status of the domestic slots once operated by Jet Airways before giving its approval. Officials from the Aviation Ministry have previously said Jet could get back some slots depending on its fleet size and operation.