The consortium led by Kalrock Capital-Murari Lal Jalan had proposed the re-launching of national airline Jet Airways as a full-service carrier with a proposed initial investment of ₹1,000 crores.
The Kalrock-Jalan consortium has reportedly started discussions with international airlines and lessors for future contracts and partnerships. This comes as the committee of creditors voted for the Kalrock-Jalan consortium edging out the FSTC-Imperial Capital consortium which was also seeking a revival of Jet Airways.
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It is said that the winning bid garnered nearly 99% of the votes and illustrated the lenders’ willingness to take the recovery route rather than opt for liquidation. The resolution plan put out by Kalrock-Jalan sets aside ₹866 crores in upfront payments along with deferred payments to some creditors. It’s worth noting that Jet Airways has admitted claims of over ₹15,000 crores.
Board member at Kalrock, Manoj Madnani said, “Our plan takes into consideration the interests of all stakeholders, including creditors and employees.” He also said that Jet Airways wil resume operations domestically as a full-service airline. Meanwhile, they will also reportedly consider opportunities in the cargo sector.
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Chief Strategy Officer at Jet Airways, Rajesh Prasad said, “By voting for the Jalan-Kalrock consortium, in the midst of the pandemic, the lenders have voted for resolution over liquidation, thereby truly vindicating the spirit of India’s insolvency process. Stakeholders including employees are naturally excited. With support of all including the government, we expect Jet to fly once again, soon.”
The primary concern now remains the assembling of a team while also ensuring the regulatory hurdles are crossed. Also, receiving prime slots at key airports will also prove to be a crucial factor in Jet Airways resuming operations again.
Though flight operations have partially started in India, there’s still a fair bit of concern over what could transpire over the next few months, particularly with regards to the COVID-19 pandemic.
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