Jet Airways: Jalan-Kalrock Consortium Likely To Take Tough Calls To Manage Cashflows

The consortium's resolution plan was approved by the National Company Law Tribunal (NCLT) in June last year. Jet Airways got its air operator certificate revalidated by DGCA in May this year

As grounded airline Jet Airways still awaits possession, the Jalan-Kalrock Consortium on Friday said that it has not breached any terms of the insolvency resolution plan and might take difficult near-term decisions to manage cashflows, reported by the PTI.

The consortium's resolution plan was approved by the National Company Law Tribunal (NCLT) in June last year. The airline also got its air operator certificate revalidated by DGCA in May this year. But the airline's handover is still awaited.

The JKC in a statement said, "While we await the handover of the company as per the NCLT process, the longer-than-expected time being taken for the same may result in some difficult but necessary near-term decisions to manage our cashflows to secure the future while the airline is still not in our possession."

“We have not breached any term of the resolution plan, and we remain committed to the revival of Jet Airways,” the consortium said. Although it did not elaborate on the decisions that could be taken to manage the cashflows. 

Last Month, the National Company Law Appellate Tribunal (NCLAT) directed the consortium to pay the unpaid provident fund and gratuity dues of employees.

“After the NCLT's approval, all conditions precedent, as outlined in the resolution plan, were completed by May 20, 2022, and the necessary filings in this regard were made before the NCLT on May 21, 2022. JKC has deposited Rs 150 crore as required under the court-approved resolution plan with the lenders, with the remaining amounts to be invested only after next steps of NCLT are fulfilled in terms of handover of the company to us,” the statement said.

It was earlier planned that the Jet Airways would be relaunched in October 2022. Sanjiv Kapoor, chief executive officer (CEO) for Jet Airways, said it has LOIs (Letters of Intent) in place for aircraft, engines, IT systems, ground handling services, catering, call centre, and all of the other services required to run an airline.

On Friday, Jet Airways shares closed nearly 1 per cent lower at Rs 77 a piece.