After Jet Airways suspended operations temporarily on Wednesday, the question that arises is what are the chances of the airline taking to the skies again in the immediate future.
According to experts, if the airline has to start operations then a new investor with deep pockets will have to be found in the next six months or latest by October. Former DGCA official told BusinessLine that this is because if an airline has to restart operations in a reasonable time frame (taken to be six months) the regulatory process for allowing it to start operating are fairly simple.
However, if the airline cannot do so in the reasonable time frame and it remains not operational for longer then it is reviewed under CAP 3100 of DGCA before it is allowed to restart operations. This involves a five-stage process that includes a pre-application phase during which it is ensured that the applicant has a clear understanding of the certification process and is able to provide a firm basis on which the DGCA can start planning allocation of resources for the revalidation of an Air Operator Certificate.
The airline also requires approval of its revised documents with the changed management and also approval of the new post holders. It also has to go through a demonstration and inspection prior to certification.
During this phase, the applicant needs to demonstrate to the DGCA that it is in a position to conduct the proposed operations in accordance with the procedures detailed in the documents/manuals reviewed during the previous phase using the personnel/facilities/equipment identified in the formal application and involves an inspection of the airline’s aircraft, maintenance facilities and arrangements. It also involves an evaluation of the airline’s training facilities, programmes and training personnel.
At the same time, the company’s organisational structure, channels of communication and delegation of powers are also subjected to detailed scrutiny to ensure that the company has sufficient resources and an effective arrangement and control to satisfy its obligations. “All this takes time and makes it difficult for restarting operations,” a former official said.
But it is not all doom and gloom for Jet Airways as the regulatory framework has been revised in the recent past and the validity of the licence of an existing airline has been extended to five years from the two years earlier. Jet Airways’ operating licence is due to expire in February 2023 while that of JetLite is due to expire in December 2022.
At the moment at least four bidders are said to have been shortlisted, including Etihad Airways, state- owned National Investment and Infrastructure Fund and private equity fund TPG.