Jet Airways’ revival has hit another air pocket as the ownership transfer process is still incomplete. This is causing a delay in the airline’s launch plans.
Sanjiv Kapoor, the CEO of Jet Airways had told businessline in September that the ticketing was likely to start in the second half of October and the airline would restart operations in November.
However, sources said the airline may not be able to start the ticketing process in November too.
Reviving and restarting
“Reviving and re-starting an airline has no precedent in India. It is taking a little longer than we may have originally hoped, but we are getting close. It is a complex process, and we do not want to act in haste and repent later,” said a spokesperson for Jalan-Kalrock Consortium
One of the three people businessline spoke to, said the recent NCLAT order which directed the Jalan-Kalrock consortium to settle unpaid gratuity and provident fund obligations of the company’s workers has caused a hindrance.
The recent NCLAT order said that the total provident fund amount had not been included in the Resolution Plan whereas the Successful Resolution Applicant had contended that the Principal Amount of the provident fund had been taken in consideration, whereas the order of levying of interest by the PF Authority post Corporate Insolvency Resolution process had not been included.
A source said that the Consortium had already earmarked funds for the gratuity and provident fund in its resolution plan. However, “if the claims weren’t admitted, or rejected was not something that the consortium was party to. It is one of the conversations that is currently ongoing with the lenders, causing the delay.”
While the other person said that the ownership transfer process is still not complete. A company source said that “The NCLT ownership transfer process is in the final stages. Hence, it has taken a bit longer, but it is a complex process.”
According to recent reports, lenders to Jet Airways had agreed to waive two preconditions to facilitate the takeover of the airline by the consortium. In return, the consortium had agreed last week to make the first tranche of its payment to lenders to get the stalled deal moving forward. However, the first tranche too hasn’t been paid out yet, according to BusinessLine’s sources.
Besides this, the airline is still negotiating agreements with aircraft manufacturers, lessors, engine makers and vendors.