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Creditor Approved Grounded Jet Airways's Resolution Plan
The airline's financial and operational creditors were owed nearly ₹ 30,000 crore ($4.1 billion) after the operations were halted.
Creditor Approved Grounded Jet Airways' Resolution Plan
New Delhi: The creditors to the Jet Airways have approved a resolution plan which will give the country's oldest private carrier a new lease of life, said the airlines in a regulatory filing on Saturday.
The plan submitted by the consortium of the London-based Kalrock Capital and the UAE based businessman Murari Lal Jalan comes after the months of the talks over the airline's future and was confirmed in the regulatory filing, which gave no details of the deal.
Meanwhile, a person aware of the developments said that the new owners agreed to pump in ₹1,000 crores as the working capital for the revival of the airlines. Also, another ₹1,000 crores will be given to the creditors over the period of the five years.
The financial creditors of the airlines will also get a 10% stake in the company, said the person though the plan remains subject to the approvals from the bankruptcy court and the country's airline regulator.
Jet Airways which has operated a fleet of more than 120 planes serving dozens of domestic destinations and international hubs such as London, Dubai and Singapore was forced to ground all flights in April 2019, crippled by mounting losses as it attempted to compete with the low-cost rivals.
After the Jet Airways halted the operations,atleast 280 slots were vacant in Mumbai and 160 in Delhi which were then given to its rivals.
“The plan is to ramp up slowly and to increase capacity gradually as they will be starting afresh,” the person quoted above said. Any resumption of flights will likely not happen for between three and six months atleast.