A delay in regulatory approvals has emerged as a major challenge to the planned revival of Jet Airways Ltd, under its new promoters, a consortium of UAE-based entrepreneur Murari Lal Jalan and UK-based Kalrock Capital.
The exit of a few key executives in charge of the revival plans in the past few months has only added to the challenges faced by the airline, which has been grounded since April 2019.
“There are jitters in the market about the revival of Jet Airways under the Jalan-Kalrock consortium. It’s been six months already since the NCLT (National Company Law Tribunal) approval, and the airline doesn’t even have basic requirements, like the AOP or fleet plan, in place,” said a senior industry executive, speaking on condition of anonymity.
“In comparison, the Rakesh Jhunjhunwala-backed Akasa Air, which has got a no-objection certificate and aircraft order in place, is likely to enter the market before Jet Airways,” the executive added.
Meanwhile, the Jalan-Kalrock consortium will have to infuse funds within six months from the ‘effective date’ of fulfilling all the conditions as stated in the resolution plan approved by the insolvency court last June, said a person with direct knowledge of the matter.