Things were going downhill last year for Jet when it ran out of funds completely and took its last flight on April 18, 2019, days short of its 26th birthday. India’s oldest private airline that started operating in May 1993, started witnessing a continuous decline in its financial capability two years ago. Since then, attempts were being made to uplift the situation and restart operations with no fruitful outcome.
The committee of creditors has now approved a thorough revival plan submitted by the London based Kalrock Capital and UAE based businessman Murari Lal Jalan. The airline is expected to start operating back again by summer of next year but only if the consortium of Kalrock and Jalan manages to raise adequate funds in the meantime.
Jet Airways may fly next year: Key points
- Eighteen months after Jet Airways (India) Ltd shut down its operations, the lenders of the airline on Saturday approved the resolution plan submitted by UK-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan to revive and operate the airline.
- “The e-voting concluded today, i.e., October 17, 2020, and the resolution plan submitted by Murari Lal Jalan and Florian Fritsch has been duly approved by the CoC (Committee of Creditors) under Section 30(4) of the Code as the successful resolution plan,” Ashish Chhawchharia, the resolution professional appointed by the lenders of the airline said in a stock exchange filing," Ashish Chhawchharia, resolution professional for Jet, said in a regulatory filing on Saturday.
- Jet Airways, once India’s largest airline, was promoted by Naresh Goyal, who held 51 per cent stake, while Abu Dhabi-based Etihad Airways had 24 per cent. Etihad, which was initially interested in taking over Jet then lost interest and offered to sell its entire stake to banks. Etihad invested $379 million in Jet Airways back in 2013 at a price of Rs 754.74 per share.
- When Jet Airways collapsed last year, it had a debt of over Rs 8,200 crore and needed to make repayments of up to Rs 1,700 crore by the end of March 2019.
- Meanwhile, the amount claimed by creditors of Jet Airways crossed Rs 40,000 crore. As of September 25, the total claims were at Rs 40,259 crore, out of which the company has admitted claims worth Rs 15,525 crore.
- UK-based Kalrock group — a global firm operating in financial advisory and alternative asset management — is backed by Fritsch, an investment group founded by serial entrepreneur Florian Fritsch, who has partnered some of the most influential families and organisations. UAE-based Murari Lal Jalan owns M J Developers, which has investments in diverse sectors like real estate, mining, and construction globally.
