Jet Airways To Resume Domestic Operations By June 2022

Jet Airways' inaugural flight would be on the Delhi-Mumbai route, and the airline's headquarters will be shifted to Delhi from Mumbai.

Jet Airways (File Photo)

Mumbai: Jet Airways will resume domestic operations in the first quarter of 2022 and short-haul international flights in the fourth quarter of next year, said Jalan Kalrock Consortium, the winning bidder for the defunct airlines. 

Jet Airways' inaugural flight would be on the Delhi-Mumbai route, and the airline's headquarters will be shifted to Delhi from Mumbai.

In June of this year, the National Company Law Tribunal (NCLT) accepted the Jalan Kalrock Consortium's resolution plan for Jet Airways, two years after the once-famous full-service carrier entered insolvency proceedings.

The company plans to have 50-plus aircraft in three years and 100 plus planes in five years. 

However, it will not be easy flying the defunct airlines as it lost its prime landing slots. The Consortium works closely with the relevant authorities and airport coordinators on slot allocation, required airport infrastructure, and night parking. 

Jet Airways has already hired over 150 full-time employees on its payroll and is looking to onboard another 1,000 plus employees FY 2021-22 across categories.

Challenges Ahead

Although Jet Airways has reached the takeoff runway for Jet 2.0, there is still a long way to go before the plane takes flight, believes Sonam Chandwani, Managing Partner at KS Legal & Associates.

The appeal filed by PNB at the NCLAT against the NCLT ruling approving the Resolution Plan is the primary stumbling block for Jet. This claim was dropped by Rs 202.09 crore by the resolution expert monitoring the bankruptcy proceedings, according to PNB's court declaration. This decision was "arbitrary, unlawful, and outside the RP's authority," PNB asserted.

PNB also requested the reinstatement of withheld funds and an interim stay of the NCLT's approval of the Kalrock-Jalan settlement arrangement.

"Furthermore, Jet has lost all of its premium slots at airports and is battling to reclaim them so that it may operate flights in the early morning and late evening. It also has personnel and staff training difficulties to deal with. Although ambitious, the Jalan Kalrock Consortium's goal to resume operations in the first quarter of 2022 faces numerous challenges," Sonam Chandwani told ABP News. 

According to Utkarsh Sinha, managing director at Bexley advisors, the key will be the strategic position Jet chose to occupy in the spectrum of the full-service carrier to ultra-low-cost carrier (ULCC). 

"Jet has significant brand equity that it retains in most measure. But a lot of what was quantifiable about that brand equity, in terms of the Jet Privilege program is stripped off, and migrated to Club Vistara - along with the loyalty that brings. Cleared if it's debt obligations, Jet still has fundamental assets (in terms of some of the remaining aircraft and routes) that could make it a contender," Mr. Sinha told ABP News.