Jet Airways has cleared a significant hurdle in its long-running revival plan, after an appellate tribunal approved the transfer of ownership to the Jalan-Kalrock Consortium, which must be completed within 90 days.
The National Company Law Appellate Tribunal (NCLAT) upheld the ruling from the lower tribunal made a year ago, which stated that the grounded carrier was to be taken over by the consortium.
The consortium – comprising tycoon Murari Lal Jalan and Kalrock Capital – were the successful bidders of the airline in 2021.
The National Company Law Tribunal ruling from January 2023 sparked a legal battle between the consortium and Jet’s lenders, including the State Bank of India, who filed an appeal against the transfer of ownership.
NCLAT dismissed that appeal, and approved the implementation of the airline’s resolution plan as originally green-lit by the lower tribunal “without any deviations”.
The first step of the ownership transfer will see the airline’s lenders create security on “immovable properties” within 30 days from 12 March. Thereafter, the lenders will have another 30 days to issue Jet Airways shares to the consortium, effectively handing over control of the carrier.
Within 30 days of the handover, the consortium and its lenders must complete all repayment to creditors. Only then can Jet Airways restart its operations, the tribunal states.
Jet was the country’s largest private carrier when it went under in 2019. Plans to revive operations had first been delayed by the Covid-19 pandemic, then later by financial uncertainty.
The consortium had in September 2023 targeted to restart Jet Airways operations in 2024. However, months later, the airline would see the departure of two directors, who cited “delays” in the implementation of the airline’s revival plans as a key reason for leaving. The carrier has also yet to appoint a new chief executive, after ex-CEO-designate Sanjiv Kapoor abruptly resigned in May 2023.
