In a significant development for the revival of the grounded airline Jet Airways, the Jalan Kalrock Consortium (JKC), the new promoters of the airline, announced on Friday that they have successfully completed an additional fund infusion of Rs 100 crore.
With this latest infusion, JKC asserts that it has fulfilled its total financial commitment of Rs 350 crore in accordance with the court-approved resolution plan. The consortium also emphasized that all their commitments have been met, positioning them to take control of the airline.
Nevertheless, it remains unconfirmed whether the lenders are satisfied with this payment and are prepared to transfer ownership of the airline. JKC has reiterated its commitment to the strategic revival of the airline and aims to have it operational once more by 2024.
This fresh round of funding follows a decision by the National Company Law Appellate Tribunal (NCLAT) last month, extending the deadline to September 30 for JKC to fulfill its financial commitment of Rs 350 crore to the lenders of the bankrupt Jet Airways.
However, the formidable task of relaunching Jet Airways presents substantial challenges. Mark Martin, founder and CEO of Martin Consulting, noted that while the consortium’s intent to revive the airline is a positive sign, it will require a significant amount of working capital to commence operations. This includes the acquisition of a fleet, recruitment of pilots and crew, and senior management.
Starting Jet Airways anew, according to Martin, is akin to launching a brand-new airline from scratch. He estimated a working capital requirement of approximately Rs 2,000 crore for any party looking to restart the airline and cover all necessary operational costs.
Jet Airways’ journey towards revival has been fraught with challenges, including a protracted bankruptcy process. The National Company Law Tribunal (NCLT) granted approval to the bid by the Kalrock Capital and Murari Lal Jalan consortium for Jet Airways in June 2021, following eight months of lender approval for the resolution plan. Initially, the consortium aimed to resume operations in 2022.
