New Jet Airways owners may infuse around Rs 1,500 crore in first tranche

The investment announcement comes days before the deadline fixed by the lenders, funding shortage has been hurting revival plans of the airline

The Jalan Kalrock consortium, which won the mandate to re-launch Jet Airways in an insolvency court early this year, has said that it intends to invest fresh equity to restart operations of the airline by early next year.

The announcement comes days before the December 22 deadline fixed of the lenders, by which the consortium has to pay the agreed sum to the banks, and failing which the company would go into liquidation. Sources said that the investment would be in the range of Rs 1,500 crore and will primarily be used for new aircraft order.

In the resolution plan approved by the NCLT in June, the winning bidders for the grounded Jet Airways had agreed to make a total cash infusion of Rs 1,375 crore in the airline. As per the resolution plan, assenting financial creditors would get Rs 380 crore, which means a haircut of 95 per cent compared to the admitted claims of a little over Rs 7,807 crore. However, even after six months, the consortium hasn’t made any payment, banking sources said due to which the ownership of the company hasn’t been transferred to the new owners.

“The Consortium wants to commence payments to all stakeholders including ex-employees, workmen, ticket claimants and lenders of Jet Airways as per the plan approved by the NCLT in June 2021. In its latest filing before the NCLT, the Consortium has intimated December 22, 2021, as its plan “effective date” and seeks to forthwith implement the plan as approved previously by NCLT in June 2021. We feel it is time to fund the company immediately for revival of the business, without delay”. He reiterated that “We are aiming to start Domestic Operations at the earliest in 2022 as a Full-Service Carrier and look forward to creating history with Jet Airways revival,” Murari Lal Jalan, who is lead member of the consortium and will be the promoter said.

The company intends to commence its operations with six narrow body aircraft and reach 100 aircraft in five years.

People in the know said that the airline is inclined to start operations with Boeing 737 NG and is in talks with the aircraft manufacturer to revive the 737 MAX order of Jet Airways of which it had an order book of 225 aircraft. While five were delivered to the airline, it stopped when the airline faced a financial crisis “It is easier to start operations with aircraft endorsement of which is already there in the air operator’s permit. It can be recertified,” the person said.

While the consortium has initially started working at a rapid pace to recertify its air operator's permit, the process slowed down as there was no funding from the consortium due to which it has been unable hiring plans including that of top management like Chief Executive Officer (CEO), Chief Financial Officer (CFO) and Chief Operating Officer (COO)—which is essential to fill for getting an air operator's permit. “They have not been forthcoming. We had given dates to them to start the revival exercise but there has not been any intimation from their side after that,” a senior official of India’s aviation regulator DGCA said.

However, the consortium said that most of the senior management positions as per the approved organisation structure has been filled and the Consortium will introduce the Entire Senior Management Team to all stakeholders soon.

“Jet Airways is a brand which has grown bigger and stronger over the last two decades and people are excited to join and work for Jet Airways. The company has received more than 35,000 applications across job categories and the team is shortlisting candidates as per its business requirements. Jet Airways 2.0’s new corporate office is in Gurugram and the consortium is looking for a bigger office in Delhi NCR to house the entire team in one office,” Jalan said.