DGCA Renews Bankrupt Jet Airways' Air Operator Certificate

Jalan-Kalrock Consortium in a statement said it has "successfully obtained renewal for AOC of Jet Airways from the Directorate General of Civil Aviation on July 28

Jet Airways stopped flying from April 17, 2019 on account of fund crisis.

Source : Getty

The winning bidder for bankrupt Jet Airways, Jalan-Kalrock Consortium, on Monday said that the aviation regulator DGCA has renewed the airline's air operator certificate (AOC), the PTI reported. According to the report, the Jalan-Kalrock Consortium (JKC) in a statement said it has "successfully obtained renewal for AOC of Jet Airways from the Directorate General of Civil Aviation (DGCA) on July 28, 2023".

The AOC was re-issued on May 20, 2022. However, since the airline did not start operations, AOC expired on May 19, 2023. The renewal of AOC revalidates the confidence of the Indian aviation regulator in the revival of Jet Airways, it added. Jet Airways stopped flying from April 17, 2019 on account of fund crisis. 

JKC emerged as the winning bidder for the grounded Jet Airways after an insolvency resolution process. However, the ownership transfer to JKC is yet to happen amid persisting differences between JKC and the lenders of the airline. According to the statement, JKC remains fully dedicated to the revival of Jet Airways and is committed to implementing a comprehensive strategy to ensure the airline's success.

"JKC will continue to work closely with all relevant authorities, industry partners, and stakeholders in reviving Jet Airways in coming weeks," it added.

Last week, JKC, the winning bidder for bankrupt Jet, announced the appointment of Jatinderpal Singh Dhillon the airline's accountable manager, reported PTI. Dhillon, an experienced pilot with a background in the Indian Navy, will assume his new role in July, according to the official statement by JKC, the report said. 

Earlier this month, two whole-time directors and a non-executive director were appointed at Jet Airways.

In October 2020, the airline's Committee of Creditors (CoC) approved the revival plan submitted by the consortium led by Murari Lal Jalan from Dubai and Kalrock Capital from the UK. In June 2021, JKC's bid received approval under the insolvency resolution process. However, the implementation of the plan has faced delays. In April 2022, Sanjiv Kapoor was appointed as the interim CEO by the consortium, but he resigned from the carrier in April of this year.

In early morning trade, shares of Jet Airways jumped nearly 5 per cent to Rs 50.80 on the BSE.