JKC infuses Rs 100 crore for revival of Jet, eyes resuming ops in 2024

Completes commitment to invest Rs 350 crore

Jalan Kalrock Consortium (JKC), the winning bidder for the revival of grounded carrier Jet Airways, on Friday said it has infused an additional Rs 100 crore in the airline as per the court-approved resolution plan.

The consortium has “fulfilled” its total financial commitment of Rs 350 crore to revive the airline, which would pave the way for it to take over the ownership of Jet Airways, JKC said in a statement.

JKC infused Rs 100 crore by August 31 and another Rs 100 crore by September 30. The tribunal allowed the adjustment of Rs 150 crore as payment by invoking JKC’s performance bank guarantee (PBG). 

While JKC did not mention the exact date of re-starting Jet’s operations, it said that it plans to re-establish the airline in the next year. It said the consortium will announce the date of re-launching the airline in the upcoming weeks. 

“The consortium’s strategy to revive the airline remains unaltered. The new promoters are determined to re-establish the operations of the airline up and running in 2024. Further announcements regarding the launch date of Jet Airways will now be made in the coming weeks,” it added. 

Earlier this year, NCLT allowed the ownership of Jet Airways to be transferred to JKC with a view to revive the carrier.

Jet Airways shut operations in April 2019 and a revival plan submitted by the consortium was approved by the committee of creditors in October 2020. The NCLT approved the plan in June 2021.

In July, aviation regulator Directorate General of Civil Aviation (DGCA) renewed the airline’s air operator certificate (AOC). Obtaining an AOC is a prerequisite for an airline to operate commercial flights.

The same month, Jet Airways lenders had urged the Supreme Court to initiate the winding-up process for the grounded airline, asserting that the approved resolution plan by the National Company Law Tribunal (NCLT) was unfeasible.

Before its operations were suspended in April 2019, Jet Airways flew to more than 65 domestic and international destinations with a fleet of 124 narrow- and wide-body aircraft.

JKC said that Jet will be a 'smart' full- service carrier with a two-class cabin configuration. This would include a business-class cabin and an economy class.

Earlier this month, Enforcement Directorate (ED) arrested Jet Airways founder Naresh Goyal in a Rs 538 crore bank-fraud case.

High hopes

 JKC now stands fulfilled to take control of the airline, said the consortium 
 

 It will announce the date of re-launching the airline in upcoming weeks
 

 In August, NCLAT gave JKC a deadline of September-end to pay Rs 350 cr as dues to the airline’s lenders
 

 The tribunal had allowed the adjustment of Rs 150 cr as payment by invoking JKC’s performance bank guarantee