A two-member bench of the National Company Law Tribunal (NCLT) approved the Kalrock-Jalan consortium's resolution plan for Jet Airways with riders. Jet Airways must obtain all permissions within 90 days effectively today, the tribunal said.
Kapil Kaul, CEO of Center for Asia Pacific Aviation (CAPA) India, Ashish Chawwcharia, Insolvency Resolution Professional for Jet Airways, Devesh Agarwal from Bangalore Aviation and Rajesh Prasad, chief strategy officer of Jet Airways discussed the resolution plan in detail in an interview with CNBC-TV18.
Ashish Chawwcharia, Insolvency Resolution Professional for Jet Airways said that the 90-day timeline will help Jet Airways sort out operational issues and thus be a tailwind for the company.
“The NCLT bench has requested and directed the government to co-operate and without slots, the airline cannot operate. If for any reason the result is not achieved in 90 days then they are provided with some kind of a further extension to come back to the bench and seek further direction for an extended period. So it’s a very welcome order, we are pleased with the outcome but we have to wait for the written order to understand any further nuances in the order,” he said.
The approval is on the expected lines. The riders, particularly with respect to the slots, will be there. However, the new investors have got a clean company.
"The liabilities were much higher than Rs 15,000 crore and to bring it down to Rs 1,200 crore is virtually a free airline subject to recap. I think the airline could look forward to resuming on a stronger footing compared to what Jet was earlier,” said Kapil Kaul.
Rajesh Prasad, chief strategy officer of Jet Airways said he had mixed feelings.
"On one side the business plan has been approved and from the acquirer’s perspective, it becomes very attractive because the entire cost dynamics has improved a lot in the aviation and once the clean slating happens – that also becomes a big plus. So from an enabling perspective, the order is good and the objective also is good,” he reasoned.
For the entire discussion, watch the video