Jet Airways 2.0 Poised For Takeoff As New Promoters Receive Security Clearance From Home Ministry

Snapshot

In a move that could pave the way for its relaunch, the Union home ministry has granted security clearance to the new promoters of Jet Airways.

A consortium comprising of UAE-based businessman Murari Lal Jalan and UK investment firm Kalrock Capital, are the new promoters of Jet Airways. The consortium is reportedly planning to infuse about $200 million through equity and debt in Jet over the next six months.

 

In a move that could pave the way for its relaunch, the Union home ministry has granted security clearance to the new promoters of Jet Airways.

Last Thursday, the airline conducted its test flight to and from the Hyderabad airport in a step towards obtaining the air operator certificate.

A consortium comprising of UAE-based businessman Murari Lal Jalan and UK investment firm Kalrock Capital, are the new promoters of Jet Airways. The consortium is reportedly planning to infuse about $200 million through equity and debt in Jet over the next six months.

The airline in its old avatar was owned by Naresh Goyal and had operated its last flight on April 17, 2019.

A letter sent by the civil aviation ministry to the airline on May 6 informed it about the grant of the security clearance by the Union home ministry.

The letter, which has been accessed by PTI, said it is ”directed to refer to your application to convey security clearance for change in shareholding pattern of the company/firm, for scheduled operator permit, on the basis of security clearance received from the Ministry of Home Affairs”.

”The security clearance can, however, be withdrawn any time in the light of any adverse inputs, if so received from the Ministry of Home Affairs in future,” it added.

Last Thursday’s test flight was conducted to prove to the Directorate General of Civil Aviation (DGCA) that the aircraft and its components are operating normally.

After the test flight, the airline has to conduct proving flights after which the DGCA will grant the air operator certificate.

Proving flights are similar to commercial flight with DGCA officials and airline officials as passengers and cabin crew members on board.

Financial distress forced Jet Airways, which flew for more than two decades, to suspend operations on April 17, 2019 and a consortium of lenders, led by State Bank of India (SBI), filed an insolvency petition in June 2019 to recover outstanding dues worth over Rs 8,000 crore.

In October 2020, the airline’s Committee of Creditors (CoC) approved the resolution plan submitted by the Kalrock Capital-Jalan consortium. In June 2021, this resolution plan was also approved by the National Company Law Tribunal.

In April, Jet Airways announced the appointment of Sanjiv Kapoor as the chief executive officer. His appointment to the post comes days after the airline brought in former Sri Lankan Airlines CEO Vipula Gunatileka as the chief financial officer.

Jet Airways is also said to be in discussion with aircraft manufacturers Boeing Co and Airbus SE for an order worth $12 billion.