“The NCLT approval will be valid for 90 days from today, following which the airline will have to approach the tribunal again for an extension,” said a source. “This is the first airline to get an approved to restart operations under India’s Insolvency and Bankruptcy Code,” the source added.
Mounting debt had forced Jet Airways to suspended its flights in April 2019. After over a year of being shut down in last October, a Jet Airways committee of creditors approved the revival plan submitted by the Kalrock-Jalan consortium. The company proposed to invest Rs 600 crore to repay creditors to acquire about 90 % stake in the carrier.
With the NCLT clearance the focus now will be on Jet Airways slots. In March the ministry of civil aviation submitted before the bankruptcy court its unwillingness to hand over Jet Airways airport time slots for arrival/departure to the new entity.
Jet Airways had about 700 time slots that allowed it to land/depart from congested airports like Mumbai, Delhi. These slots, one of the major assets of Jet Airways, were temporarily reallocated to other airlines after Jet suspended operations. The ministry said that Jet will need to apply afresh for these slots and the airline may or may not be granted those slots.
Currently, the matter is under discussion by both parties. In April, the ministry of civil aviation appointed a nodal officer to amicably resolve the Jet Airways airport slots issue through meetings with the airline’s resolution applicant Kalrock-Jalan consortium, said a source.