Jet Airways inches a step closer towards its revival plan as it files for NCLT approval — owners aim to revive operations with six aircrafts

• In its resolution plan, the company stated it aims to begin operations with six aircraft on domestic routes and add one aircraft every month post-commencement.
• Post the NCLT approval, the company plans to reach out to the Ministry of Civil Aviation and DGCA for multiple clearances.
• On November 3, the winning consortium had also submitted the performance security bond of about ₹150 crore.

Weeks after the beleaguered airline Jet Airways found its new owners — the company has now submitted a revival plan with financial and operational measures to the National Company Law Tribunal (NCLT).

With this move, the consortium inches a step closer towards resurrecting the debt-strapped airline. For any takeover under the Insolvency and Bankruptcy Code, the first step is to get approvals from the creditors, followed by NCLT clearance.

According to an ET report, the financial plan submitted by Kalrock Capital and Murari Jalan includes an upfront payment of ₹380 crore to financial creditors. And it also lists a further payment of ₹590 crore in year three, four and five of commencement of operations. The company will also pay 10% of free cash flows to the financial creditors. And will also provide a 9.5% stake in Jet Airways and a 7.5% stake in JPPL for financial creditors.

The operation plan entails a mix of international, cargo, domestic operations for the cash-strapped airline. It also plans to onboard new generation aircraft to improve its efficiency. The airline also mentioned that it would look for international alliances and partners from the beginning of the operations.

In its resolution plan, the company stated it aims to begin operations with six aircraft on domestic routes and add one aircraft every month post-commencement, taking the fleet size to 120 in a period of five years.

After the National Company Law Tribunal (NCLT) approves the plan, the company will reach out to the Ministry of Civil Aviation and DGCA for multiple clearances, such as certificates to the slots at the airport, among others.

Earlier, Jet Airways approved the resolution plan submitted by Murari Lal Jalan and Kalrock Capital to acquire the airline. On November 3, the winning consortium had also submitted the performance security bond of about ₹150 crore.

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