Indian airline, Jet Airways which ceased operations on the 17th of April 2019 has now been given a second lifeline, courtesy of new owners Kalrock-Jalan. The consortium which is based in the United Kingdom was founded by entrepreneur Florian Fritsch and Murari Jalan, a UAE-based entrepreneur. The grounded airline received two bids overall, with the other bid coming from a consortium consisting of Haryana-based Flight Simulation Technique Centre, Big Charter of Mumbai and Abu Dhabi’s Imperial Capital Investments LLC.
The joint bid by Kalrock Capital and Murari Jalan for the insolvent carrier was successfully approved on October 17th, 2020. The committee of creditors for the grounded airline approved the consortium’s bid via an e-vote, and the application will be filed with the National Company Law Tribunal (NCLT). Manoj Madnani, a board member of Kalrock Capital, thanked Jet Airway’s committee of creditors for managing the insolvency process. According to Moneycontrol the board member said, “We look forward to engaging with the Jet Airways stakeholders, and bringing back the glory and legacy of the airline.”
“The the resolution plan submitted by Mr. Murari Lal Jalan and Mr. Florian Fritsch has been duly approved by the CoC under section 30(4) of the Code as the successful resolution plan,” in a filing to the stock exchange submitted by Grant Thornton’s Ashish Chhawchharia. Ashish Chhawchharia who was appointed by Jet Airways’ creditors as the resolution professional told the stock exchange that, “The Resolution Professional is in the process of filing an application in accordance with section 30(6) of the Code for approval of the said resolution plan by the Hon’ble NCLT and intimation of the same shall be given to the members as required.”
The State Bank of India (SBI), to whom Jet Airways owes 24% of its debt approved the deal along with other major creditors such as IDBI Bank, Yes Bank, and Punjab National Bank. At 17% Yes Bank is the second-largest lender to the airline.
According to the consortium’s resolution plan, Jet Airways will operate as a long-haul international carrier and plans to sell its old aircraft and purchase new ones. Airport slots that Jet Airways lost due to being grounded will also be repurchased. Fresh funds will be injected into the airline, with lenders being offered equity in the Indian airline. It is expected that the consortium will reveal a more comprehensive plan about Jet Airways’ fleet and routes in the coming weeks. But one thing is clear, this major acquisition will give Jet Airways a second chance under new ownership.
Manish Raniga, a former executive at Jet Airways and aviation expert told Moneycontrol that, “The successful resolution process has enabled the chance for the revival of an iconic brand. The new owners have a challenge, but also an opportunity to re-imagine an airline in the post COVID-19 era on a clean sheet. The success of Jet Airways 2.0 will largely hinge on the ability to radically transform its business model whilst leveraging on a brand known for its superior customer service and innovation.”
