Mumbai-based Indian international airline Jet Airways, which has been grounded since April last year, will soon see the light of the day. After undergoing discussions with lessors and international airlines for contracts and partnerships, the Kalrock Capital-Murari Lal Jalan consortium has come up with a proposal of re-launching Jet Airways as a full-service carrier with an initial investment of Rs 1,000 crores.
The abovementioned proposal by London-based Kalrock Capital and UAE-based businessman Murari Lal Jalan emerges after months of consideration over the airline’s future.
As per the inputs from a close source, the new owners had agreed to put in 1000 crore rupees as working capital to breathe life into the otherwise dead airline. Another amount of 1000 crore will be paid to creditors over a period of five years. Additionally, the financial creditors of the airline will also be subjected to a 10% stake in the company, although the plan requires approvals from the bankruptcy court and the country’s airline regulator.
Jet Airways, which used to operate a fleet of more than 120 planes and serve dozens of domestic as well as international destinations, was forced to ground all flights in April 2019, being crippled by swelling losses with its effort to strive with low-cost competitors.
After Jet’s operations were halted, approx. 280 slots in Mumbai and 160 in Delhi got vacant, which were then allotted to its rivals. The proposed revival plan also looks forward to getting some of these slots back.
Source: Reuters
