After a long period of slump, Jet Airways is finally ready to take off By the end of this year!
Jet Airways had to ground all flights in April 2019, and the carrier owes about Rs. 8000 crore to banks and public sector lenders also have significant exposure.
Jet Airways All Set To Relaunch Flights By The End Of The Calendar Year
As we had previously reported, rising fuel costs and market domination by Indigo has been attributed for Jet Airways’ record losses in the last 2 years. In FY 2018, Jet Airways experienced a loss of Rs 767 crore, meanwhile by the end of first quarter of 2018, it is estimated that they will incur a loss of Rs 1000 crore by the time FY ends.
The airline had also sent a letter to all employees, informing them that unless salary cuts are implemented, the airlines will be shut down in the next 60 days.
But things are looking up for the airline now. The company’s revival plan has been approved by the National Companies Law Tribunal (NCLT). Additionally, a consultant that is working with the company has also confirmed that the new routes will be finalized within the next 90 days.
NCLT has given 90 days to the Directorate General of Civil Aviation and the Civil Aviation Ministry so as to allot slots to the airline.
As per Ashish Chhawchharia, Head of Restructuring Services at Grant Thornton Advisory, “Based on discussions I have been having, given the order has been received today, I think it would be a fair estimate to say that by the end of this calendar year we can hope to Jet in the skies again.
Jet Airways Might Not Start Off With 120 Aircraft Crew
The company of Chhawchharia has been assigned the duty to look after the airline’s restoration by a consortium of London-based Kalrock Capital and the UAE-based businessman Murari Lal Jalan.
He also commented on the employees that the airline would re-employ, saying that Jet Airways might not start off with a 120-aircraft crew from day one.
As per him, discussions are ongoing with the airports, the Aviation Ministry, and the DGCA over slots at airports and various domestic and international routes.
Previously, we reported to you that the Jet 2.0 hubs will remain Delhi, Mumbai, and Bengaluru like before. The airline will also support Tier 2 and Tier 3 cities with the help of sub-hubs and boost the economy in these cities.
The Jet 2.0 plan also plans to emphasize the increasing cargo services so as to include dedicated freighter service, which is a market currently under-served by any Indian airline.
The new plan has already been approved by the airline’s creditors, which was submitted by the consortium. There are about 21,000 creditors who are seeking claims of Rs. 44000 crore and has also had almost all of its landing slots confiscated.
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