The National Company Law Tribunal (NCLT) on Friday, December 11, adjourned the key hearing on the revival plan for grounded air carrier Jet Airways. The bankruptcy court has now listed the matter for hearing on December 17 due to lack of time.
Jet Airways, once India’s largest airline by market capitalisation, plans to restart regular operations as a full-service carrier by the summer of 2021, its new owners said earlier this month. A consortium, led by the Dubai-based entrepreneur Murari Lal Jalan as well as London-based Kalrock Capital on December 7, announced a revival plan for the airline.
“The Jet 2.0 program is aimed at reviving the past glory of Jet Airways, with a fresh set of processes and systems to ensure greater efficiency and productivity across all routes,” the consortium said in a statement. Jet Airways halted operations in April 2019 due to bankruptcy amid a weight of heavy debt.
The airline plans to operate all its historic domestic slots across the country and also resume international flight operations once it receives approvals from the regulators and the National Company Law Tribunal.
Jet Airways: Gaining New Ground?
According to the revival plan, the Jet 2.0 hubs will remain Delhi, Mumbai, and Bengaluru same as before. This is likely to help the carrier regain its lost ground. Jet Airways will support Tier 2 and Tier 3 cities by creating sub-hubs, which are expected to boost the economy in these cities.
The airline also awaits the reinstatement of slots and bilateral traffic rights. It aims to increase the demand for freight services due to the COVID-19 pandemic, which pushed the country’s economy into a record slump earlier this year.
Creditors Approve Jet Plan
Jet Airway’s creditors have already approved the revival plan, which was submitted by the consortium in October 2020. The airline has around 21,000 creditors seeking claims of ₹ 44,000 crore, and most if its landing slots are confiscated.