Jet Airways revival hits roadblock as consortium may take tough call

NEW DELHI: Amid the continuing uncertainty over the fate of grounded Jet Airways, the Jalan Kalrock Consortium on Friday said it has not breached any terms of the insolvency resolution plan and might take difficult near-term decisions to manage cashflows.

The consortium’s resolution plan was approved by the National Company Law Tribunal (NCLT) in June last year but the airline, which also got its air operator certificate revalidated by aviation regulator DGCA in May this year, is yet to start operations.

“... while we await the handover of the company as per the NCLT process, the longer-than-expected time being taken for the same may result in some difficult but necessary near-term decisions to manage our cashflows to secure the future while the airline is still not in our possession,” the Jalan Kalrock Consortium said in a statement. It did not elaborate on the decisions that could be taken to manage the cashflows.

“We have not breached any term of the resolution plan, and we remain committed to the revival of Jet Airways,” the consortium said, adding that it has made significant progress to relaunch the airline.

The statement also comes against the backdrop of the National Company Law Appellate Tribunal (NCLAT), last month, directing the consortium to pay the unpaid provident fund and gratuity dues of employees of the carrier.

“After the NCLT’s approval, all conditions precedent, as outlined in the resolution plan, were completed by May 20, 2022, and the necessary filings in this regard were made before the NCLT on May 21, 2022.