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Jet Airways could be flying again by April next year if the plan submitted by the financial advisory firm Kalrock Capital and Murari Lal Jalan gets all the regulatory approvals quickly.
On Saturday, the Committee of Creditors of Jet Airways voted in favour of the Kalrock -Jalan consortium. According to sources, the plan submitted by the winners includes a cash amount of ₹1,000 crore. Banks also get 9.5 per cent of equity in Jet Airways and 7.5 per cent equity in loyalty rewards company InterMiles (formerly Jet Privilege).
Speaking to BusinessLine , Manoj Madnani, Board Member of Kalrock Capital, said. “We are very grateful that the lenders chose our plan. We are very overwhelmed with the brand loyalty that Jet has. Once we go through the final NCLT and regulatory hurdles, we will have a better picture. Globally, the passenger market has dipped but the only silver lining in the sky is that the cargo business is flourishing.”
Though he didn’t share the details of the business plan, Madnani said, “Initially, it will be domestic and cargo, gradually it will be short haul international. Conversations with Boeing are on, we are also speaking with other companies and other leasing companies. One thing for us is very clear that we want one aircraft type and body in our fleet.”
Over 97 per cent of the Committee of Creditors of Jet Airways voted in favour of the resolution plan submitted by this consortium. The airline was grounded in April 2019 over unpaid dues and multiple defaults. Currently Jet has 3,300 employees. The consortium had told the lenders that it will cut down the employee strength to about 300 initially. A sum of ₹1,200 core will also be set aside to clear employee dues. Passengers are also awaiting ticket refunds worth ₹1,974 crore. According to a source, the Kalrock-Jalan team has decided to refund money to passengers with a cap of ₹15,000 per passenger.
The winning bid will have to be approved by the NCLT and the Ministry of Civil Aviation.
Also read: My bid for Jet Airways was ‘better, more credible’: Sanjay Mandavia
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