MUMBAI- There is high uncertainty over India’s Jet Airways (9W) comeback as the Jalan Kalrock consortium (JKC) has less than a month to pay its creditors.
On April 17, 2019, Jet Airways’ employees witnessed an emotional moment. As the airline operated its last flight from Amritsar to Mumbai. All operations were suspended due to severe financial turbulence.
However, even after four years, there is still no clarity on when the airline will return to the skies. According to sources, the Jalan-Kalrock consortium, which won the bid to take over the airline, has not paid creditors despite the approaching 180-day deadline on May 13, less than a month away.
The consortium must pay Rs 270 crores to creditors and Rs 225 crores to PF. Furthermore, a gratuity of employees, as ordered by the Supreme Court, before transferring airline ownership.
The consortium has been in talks with lenders since the NCLAT refused to keep NCLT’s order directing the implementation of the resolution plan. CNBC-TV18 reported this development.
Jet Airways challenges to pay creditors
Jet Airways faces the challenge of renewing its Air Operator’s Certificate by May 19. Still, the renewal process is complicated, and the airline is currently incapable of demonstrating its ability to run scheduled operations with the necessary fleet and personnel.
While the Jalan-Kalrock consortium, which won the bid to take over the airline, has yet to pay creditors before the May 13 deadline, there have been disagreements over the additional PF & gratuity payment liability.
The resolution process has been challenging for the airline’s employees, who have lived in uncertainty for years. Some hope the airline will revive, while others await their compensation.
Employee associations have also requested the airline’s liquidation as the resolution plan does not favor their interests. The Jalan-Kalrock is yet to comment on the airline’s timeline.
Jet Airways might see more hurdles as they get closer to restarting their operations. The airline core committee members have strong Business acumen in Aviation and Travel Industries. With this, we can expect Jet to return to the skies and stand up to its reputation.
Despite facing many obstacles, Jet Airways have covered a lot of ground and are a few steps away from getting started. In addition, Jet Airways will be the first defunct airline to restart its operation in India.
Stay tuned with us. Further, follow us on social media for the latest updates.