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Another Indian airline has been dragged to the National Company Law Tribunal (NCLT). Indian regional airline Zoom Air’s parent company Zexus Air Private Limited has been dragged to the insolvency court for unpaid dues.
According to sources, an expatriate pilot associated with the company had filed an application in the insolvency court as an operational creditor.
“The matter was admitted by the NCLT on March 25. An interim resolution professional, too, has been appointed. All operational and financial creditors have been asked to submit their claims before April 08. The court has set September 21, 2022, i.e. 180 days from the date of commencement of the insolvency proceedings to complete the insolvency process.”
A mail sent to the CEO of Zoom Air remained unanswered, while the directors at the company refused to comment.
Zoom Air was started in February 2017. At the peak of its time, the airline operated on 12 routes. The airline had five Bombardier CRJ100/200 in its fleet. According to previous media reports, the airline was grounded once between July and December 2018 due to safety reasons by the DGCA. It was supposed to restart operations in 2019 January. While company sources claim that the airline was operational till January 2021, the DGCA reports do not include the operations data on the same.
Over the past three decades, nearly 40 companies have launched regional airlines, though only a few have managed to stay afloat, which indicates deep-rooted problems carriers face to sustain operations over a longer period of time.
After Jet Airways, this will be the second airline to be dragged to the insolvency courts. Jet was grounded in 2018. It took the creditors of the airline almost two and half years to find a new owner. While the airline has not restarted its operations yet, the Kalrock-Jalan consortium has assured to restart of operations this year.
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