If Kalrock-Jalan consortium receives approval, Jet Airways can resume operations by upcoming summers

According to The Economic Times, the consortium of Gulf-based businessman Murari Lal Jalan and London’s Kalrock Capital on Monday said it has set a goal for an inoperative airline Jet Airways to resume operations by the summer of 202. The airline will retain the Jet Airways brand.

The resolution plan of the consortium was recently given a green signal by Jet’s committee of creditors. It still awaits approval from India’s bankruptcy court the National Company Law Tribunal (NCLT). The resolution proceedings lasted for more than a year before Jet could secure new investors in the Jalan-Kalrock consortium. Jet stopped operating in April last year starved of cash and burdened by debt and dues. The NCLT admitted its case in June.

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“The Jet 2.0 hubs will remain Delhi, Mumbai, and Bengaluru like before. The revival plan proposes to support Tier 2 and Tier 3 cities by creating sub-hubs in such cities,” said the statement. The consortium plans to initiate a dedicated air freight service under Jet. According to the resolution plan, the new investors in Jet have chalked a plan to infuse Rs 1,000 crore into the airline over the next 5-7 years, with lenders bagging a deal that offers not significantly more than the liquidation value of the grounded carrier.

The new owners will possess about 90% stake in the airline. Jalan and Kalrock plan to divide their holding in Jet in a ratio of 51:49, resolution professional Ashish Chhawchharia of Grant Thornton said in an interview. Public shareholding will be reduced. Jet owns 49.9% of the airline’s loyalty programme subsidiary Jet Privilege, now named InterMiles, he had said. The rest is owned by Etihad.