Mumbai: The Mumbai bench of the National Company Law Tribunal (NCLT) on Tuesday approved the Jet Airways resolution plan submitted by UAE-based little known entrepreneur Murari Lal Jalan and UK-based asset management company Kalrock Capital for Rs 1375 crore to revive the defunct carrier, which may start flying by the end of this year.
The tribunal presided by judicial members – Janab Mohammed Ajmal and V Nallasenapathy, while allowing the resolution plan in an oral order, also directed the successful bidder to get the required approval and licenses from relevant authorities within 90 days.
At the time of approval of the plan, the Directorate General of Civil Aviation (DGCA) and Ministry of Civil Aviation (MoCA) advocates sought to stay the implementation of the order for eight weeks with the arguments that the regulator wants to challenge the ruling in Appellate Tribunal. However, the NCLT rejected the plea of the regulator and the ministry.
According to the plan, the new promoters will have to start operation with 30 aircraft within six months from the approval of the plan by NCLT. Jet Airways, India’s oldest private airline, founded by Naresh Goyal, ceased operations in April 2019 due to a severe lack of funds.
With the approval of the resolution plan, the new promoters are getting a fleet plan in place to reinstate the airline’s position as a full-service carrier.
Jet Airways’ existing fleet of 11 aircraft, grounded for over two years now, may be retired, and the company may lease new aircraft to start operations.
The new promoters have demanded historicity regarding airport slots used by Jet Airways before its collapse, a demand government has refused, citing that the airline cannot bank on historicity to reclaim lost slots.
The tribunal has given 90 days to the DGCA and Aviation Ministry to allot the slots.
It is learned that the new promoters are is in talks with the government about the availability of slots, and the carrier is open to alternating slots on a plus/minus 15 minutes basis.
Ahead of the NCLT order, shares of Jet Airways were locked in a 5% upper circuit at Rs 99.45 on the BSE in a firm Mumbai market on Tuesday.