Shares of Jet Airways took a flight on Wednesday, hitting 5 per cent upper circuit at Rs 104 apiece on the BSE, as the Kalrock-Jalan consortium recieves nod to operate the airline again. Shares of the defunct airline are up 15.6 per cent in 3 trading sessions as against a 1 per cent gain in the frontline S&P BSE Sensex.
On Tuesday, the National Company Law Tribunal (NCLT) cleared the resolution plan submitted by the consortium, pavong way to re-start the airline that has been out of business since 2019. The consortium will now apply for the relevant government approvals before it can recommence operations.
According to a Business Standard report, the airline's new management will have to appoint key executives in engineering, flight safety, operations and security. It will also have to update all operations manuals and undergo a regulatory audit before securing permission to start operations.
"The consortium has shortlisted Sudhir Gaur, former head of Jet Airways operations and training, and a few other executives in senior operational roles. Gaur has been working with Nepal Airlines following the closure of Jet. With the passing of the resolution plan, the insolvency process of Jet has come to an end. Now, a monitoring committee, comprising representatives of banks, the consortium and resolution professional Ashish Chhawchharia will oversee the functioning of the company for the next 90 days," the report said. READ ABOUT IT HERE
While the consortium will be responsible for negotiations with airports and suppliers, the committee will function as a quasi-board and look after all corporate actions and compliances, it added.
The new board of the airline will take over on the effective date which has been set at 90 days from the passing of Tuesday’s order. The consortium will also have to pay a performance bank guarantee of around Rs 100 crore and meet other conditions.
Other aviation stocks, InterGlobe Aviation and SpiceJet were trading either way of flat line. The former was up 0.08 per cent at 9:50 AM while the latter was down 0.7 per cent. The benchmark Sensex index, meanwhile, was up 0.13 per cent.