The NCLT has approved of the revival plan for the beleagured Jet Airways. According to news reports, the plan by consortium of London-based Kalrock Capital and UAE-based businessmen Murari Lal Jalan was approved by the National Companies Law Tribunal (NCLT) on Tuesday.
The Directorate General of Civil Aviation (DGCA) and Ministry of Civil Aviation (MCA) have been given 90 days starting today to allot slots to the airline, according to CNBC-TV18.
As per the NCLT order, the DGCA will take the final decision on the allotment of slots to the airline. A government official has told the news channel that the DGCA and MCA will study the detailed order before deciding on slots.
At 2.15 PM, the shares of Jet Airways was up Rs 4.70 or 4.96 percent at Rs 99.45.
Airline open to alternate slots
On Monday, the airline had indicated to the court and the regulator that “it is open to alternate slots with a margin of 15 minutes plus or minus on an average if the requirement for a slot cannot be met on account of non-availability”, the business channel reported.
The government also wants to revive Jet Airways, stated a source. The airline is also getting its fleet plan in place as it aims to reinstate its position as a full-service carrier.
Jet Airways has 11 aircraft, which are owned by the airline. However, these have been grounded for over two years now. It consists of B777, B737 and A330s.
The airline may replace its existing fleet with new fuel-efficient aircraft which it plans to take on lease. These new airlines will be a combination of Airbus and Boeing make.
As soon as the NCLT order is approved, the airline's current plan is to resume flights within six months.
Recently, the airline was in news after its shareholders rejected approval for its audited standalone financial statements for the financial years ended March 31, 2019 as well as March 31, 2020, according to regulatory filings. The proposal to appoint Sharp and Tannan Associates, Chartered Accountants as statutory auditors has been cleared by the shareholders.
Jet Airways was unable to prepare its financial results on time as directors, CEO, CFO and various other top management personnel had resigned before the resolution process began in June 2019.