Shares of Jet Airways surged nearly 5% on Monday in the wake of Murari Lal Jalan of Jalan-Kalrock consortium saying it expects to restart operations of Jet Airways in four to six months after receiving approval from the NCLT for its resolution plan.
After opening in the green, the airline’s share rose 4.98% to hit the upper circuit limit of ₹114.90 on the BSE. The scrip hit its upper trading limit on the NSE as well with a gain of 4.98% to ₹114.95.
Jet Airways, the once-storied full-service carrier was grounded in early 2019 and subsequently is undergoing proceedings under the Insolvency and Bankruptcy Code (IBC).
The consortium had won the bid for Jet Airways in October 2020 and had plans to re-launch the airline by the summer of 2021. For that it was crucial to get the clearance from the National Company Law Tribunal by January, in order to get slots for the summer schedule of airlines that is released by regulator Directorate General of Civil Aviation, or DGCA.
Against the backdrop of the National Company Law Tribunal (NCLT) likely to take a final call on the resolution plan for the airline, the winning consortium’s lead member Murari Lala Jalan told PTI that “everything is on track” as far as the revival efforts for the carrier are concerned.
Jet Airways to Resume with 25 Aircraft
Stressing that he is very positive about the Indian aviation sector, which is recovering from the impact of the coronavirus pandemic, Mr. Jalan said that initially Jet Airways will resume flying with around 25 aircraft.
“After the NCLT decision, we will be able to start the airline within four to six months. I am very positive about Indian aviation and the future is bright,” Mr. Jalan said during a telephonic interaction.
“We are very hopeful that it (NCLT nod) will come,” he said, adding that a delay of one or two months here and there would not make a difference for such a big thing as reviving the airline.
Mr. Jalan said he would like to continue with the same legacy that Jet Airways used to have. “In fact, we would like to bring in a youthful flavour with a lot of internet and other things on the air apart from the old legacy we will definitely continue with the premium airline and what it used to be,” he was quoted by The Economic Times.
As per plans, Jalan-Kalrock consortium will inspect the Boeing 777 aircraft parked at Mumbai airport once the NCLT clearance comes. “We are not sure what is the situation with the existing aircraft. At the moment, we are planning to start with the new aircraft. If the existing aircraft can be used, we definitely would like to use it in the later stage,” he said.
Mr. Jalan said he would definitely like to start operations on international routes as soon as possible but a lot of formalities need to be done and lot of work has to be done to start those routes. “Our target is to start as soon as possible and definitely within this year, we would like to go international,” he said.
On the issue of slots, Mr. Jalan said that he expected Jet Airways to get the slot it needed upon restarting of operations under a new management for which they were on the look out for professionals to run the carrier.
The consortium, Mr. Jalan said had already been fulfilled whatever commitment had been given as per their resolution plan. “The fund that was required until now and whatever is required to start the airlines is ready. We are not looking at anything immediately but as the business grows, we are expecting a lot of cash flow to come. Also, we can go to the market whenever it is required. Nothing is ruled out,” he said.