Jet Airways’ Resolution Plan To Revive The Airline Gets Approval From NCLT
Jet Airways’ resolution plan proposed by the Kalrock-Jalan consortium gets approval while the bench rejects the airline’s historicity on slots.
The worldwide lockdown that came with COVID-19 has impacted many industries including the travel and aviation industry. Many flights were cancelled while countries banned airlines from bringing passengers from countries with high positivity rates. Meanwhile, Jet Airways which is India’s oldest and largest airline had to shut down way before that, in 2019. Now as they gear up for a comeback, the resolution plan proposed by the Kalrock-Jalan consortium gets a positive nod from the NCLT.
The National Company Law Tribunal aka NCLT has given their approval on the resolution plan for the revival of Jet Airways. However, the bench has clearly stated that the airline can’t rely on its historicity for receiving slots. In fact, this authority has been given to the Directorate General of Civil Aviation (DGCA) and Ministry of Civil Aviation (MCA). Within the coming 90 days, depending on Jet’s proposal, the DGCA and MCA will decide which slots can be given to the airline.
Jet Airways and prime slots
Initially, Jet Airways had a hold on the prime slots for the arrival and departure of their airlines, which are the morning slots and the evening slots. Jet Airways faced insolvency in 2019, and these slots were given to the other airlines. Now as per NCLT, the decision about which slots to give to Jet Airways lies with the DGCA. Moreover, there has been no binding order about bilateral rights that enables an airline to carry out international flights. This decision will also be at the hands of DGCA.
Meanwhile, Jet Airways had also kept the demand that their previous licenses and permits be restored, which has been rejected by the NCLT. So now, Jet will have to go through the hassle of getting all new permits. On top of that, when Jet returns to the aviation industry after resolving all these issues, it will be faced with another challenge, i.e. competition from the current top players.
On a positive note, Jet’s shares have started flying post approval from the NCLT. This has given a new ray of hope to the revival of the airline.
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