Lenders to Jet Airways will recover ₹1,183 crore over a five-year period, according to the debt resolution plan submitted by the Kalrock-Jalan combine.

Of this, the first tranche, in cash, will be of ₹280 crore after 180 days of the new promoters taking ownership of the beleaguered airline. And, a second cash tranche of ₹195 crore will follow in 730 days. The balance will be paid through a mix of cash, asset sale and from the cash flows generated by the airline every year. In effect, the new owners will acquire controlling stake in Jet for a cash consideration ₹475 crore.

Once the plan is approved by the NCLT, Kalrock-Jalan will own 89.79 per cent of Jet Airways. Banks will hold 9.5 per cent. The public shareholding will be reduced from 25 per cent to 0.21 per cent and the workmen and employees get 0.50 per cent. Etihad Airways will exit the company without any compensation.

The consortium proposes to buyout Etihad’s 50.1 per cent stake in Jet Privilege Private Limited (JPPL) for ₹25 crore. The banks will also get a 7.5 per cent stake in JPPL, now called Intermiles. The new owners will liquidate 100 per cent of Jet Lite and give the proceeds to the lenders.

Financial creditors will get ₹1,010 crore over the next five years against a claim of ₹7,453 crore. Operational creditors, including vendors, ticket agents, and travel companies, will get payments for claims of only up to ₹15,000 per creditor.

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Staff claims

Jet Airways had over 22,000 employees who had submitted claims of ₹4,700 crore in terms of pending salaries and other dues. However, they will get only ₹113 crore. As goodwill, each employee will get ₹11,000 along with ₹5,100 for medical and school fee expenses. They have also been offered a laptop/ipad/ computer/tablet by a lottery system from Jet’s old IT Department and free air ticket up to ₹10,000 to every employee/ workmen.

Jet currently has close to 3,600 employees. The consortium has decided to demerge the employees into a subsidiary company of Jet Airways called AGSL. The new owners have set a condition that 95 per cent of employees and workmen should agree to this proposal, else it will be withdrawn within 30 days.

According to the plan, the consortium plans to replace 11 existing aircraft with 6 narrow-body B737s. It will induct one aircraft every month the first year and gradually build up the fleet to 120 planes over the next five-six years.

The NCLT will examine the plan on February 25.