National Company Law Tribunal, NCLT Revives Jet Airways
- ByStartupStory | June 23, 2021
After being inactive and grounded for years, NCLT revives Jet Airways with a resolution plan submitted by Kalrock-Jalan consortium, giving a ray of hope to the airline company. The Directorate General of Civil Aviation and Ministry of Civil Aviation have been given approximately 90 days, starting today, to allot slots to the airline, as reported by a news source. As ordered by NCLT, the DGCA will take the final decision on the allotment of slots to airline. Now, DCGA and MCA will study the detailed order before deciding on slots for Jet Airways, since the entire responsibility of reviving the airline has been given to them.
Before NCLT revived Jet Airways, the airline’s slots have been allocated to other airlines who have more crowds and more planes flying in and out. This decision of restarting this airline has been supported by many, as this would mean India’s largest and oldest private airline will run again. Recently an affidavit had been submitted to the bankruptcy court by DCGA and MCA, and it said that Jet Airways is not in a position right now to claim historical slots. Therefore, reallocation of new slots for this airline will of course has to be done keeping in mind the new guidelines. This revival news has also increased Jet Airways share, as they hit 5% upper circuit in National Stock Exchange.
After suffering a severe financial crunch, Jet Airways waa grounded. An SBI -led consortium had then requested NCLT to look in to the matter for resolution under insolvency and bankruptcy code. In October 2020, a consortium led by Murari Lal Jalan and Kalrock Capital secured the bid for Jet Airways after several rounds. The Kalrock-Jalan consortium is believed to have offered Rs 1,183 crore as repayment over a period of five years to financial creditors, employees and other staff of Jet Airways. It has also offered about a 9.5 per cent stake in Jet Airways and a 7.5 per cent stake in Jet Privilege to financial creditors
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