Monday, March 4, 2024
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Jet Airways’ launch plans continue to be delayed

Jet Airways’ revival has hit another air pocket as the ownership transfer process is still not complete. This is causing a delay in the airline’s launch plans.

Sanjiv Kapoor, CEO of Jet Airways, told a business line in September that ticket sales are likely to start in the second half of October and the airline will resume operations in November.

However, sources said the airline may not be able to start the ticketing process in November as well.

“The revival and relaunch of an airline is unprecedented in India. It’s taking a little longer than we might have originally hoped, but it’s getting there. It’s a complex process and we don’t want to act hastily and regret it later,” said a spokesman for the Jalan-Kalrock Consortium.

One of the three people the business line spoke to said the recent NCLAT order directing the Jalan-Kalrock Consortium to settle unpaid gratuity and liabilities of the company’s employees from the pension fund had created a setback.

The recent NCLAT order stated that the total amount of the pension fund was not included in the resolution plan, while the successful resolution applicant claimed that the principal amount of the pension fund was taken into account, while the PF interest collection order was not included in the post-insolvency process.

The source said the consortium has already earmarked funds for gratuity and a contingency fund in its resolution plan. However, “if the claims were not accepted or rejected, it was nothing that the consortium would participate in. It’s one of the conversations we’re currently having with lenders that’s causing the delay.”

While the other person said that the ownership transfer process is still not complete. A company source said, “The NCLT ownership transfer process is in its final stages. That’s why it took a little longer, but it’s a complicated process.”

According to recent reports, Jet Airways’ creditors have agreed to waive two conditions to facilitate a consortium takeover of the airline. In return, the consortium agreed last week to make the first tranche of its payment to creditors to move the stalled deal forward. However, according to BusinessLine sources, even the first tranche has not been paid yet.

In addition, the airline is still negotiating agreements with aircraft manufacturers, lessors, engine manufacturers and dealers.

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