NCLT approves resolution plan for revival of Jet Airways

The Mumbai bench of the National Company Law Tribunal (NCLT) has approved the revival plan submitted by the Jalan-Kalrock Consortium for the bankrupt-Jet Airways. The tribunal gave Director General of Civil Aviation (DGCA) and Aviation Ministry 90 days from June 22 to allot slots to the debt-laden airline. The civil aviation regulator will take the final call on allotment of slots.

The airline founded by Naresh Goyal over 25 years ago suspended operations in April 2019 as it faced a cash crunch and struggled to keep itself afloat. It has been undergoing a resolution process under the Insolvency and Bankruptcy Code (IBC) for two years, news agency PTI reported. The affairs of the shuttered airline is now being managed by insolvency resolution professional Ashish Chhawchharia.

In June 2019, NCLT admitted the insolvency petition against Jet Airways filed by the lenders’ consortium led by the State Bank of India.

In October 2020, the Committee of Creditors (CoC) of the grounded airline had approved the resolution plan submitted by a consortium of UK’s Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan. The Kalrock-Jalan consortium had proposed to repay banks, financial institutions and employees ₹ 1,200 crore over next five years and establish Jet Airways as a full service airline with 30 aircraft.

It had started as an air taxi operator on May 5, 1993, with a fleet of four leased Boeing 737-300 aircraft. The airline, which got listed on domestic bourses in February 2005, operated its first international flight from Chennai to Colombo in March 2004. It operated a fleet of more than 120 planes serving dozens of domestic destinations and international hubs such as Singapore, London and Dubai.