India’s Jet Airways will be acquired by an investor consortium under a multi-million dollar resolution plan approved by the airline’s creditors on Saturday.
The plan, presented by a consortium of London-based Kalrock Capital and UAE-based businessman Murari Lal Jalan, comes after months of talks about the airline’s future and was confirmed in a legislative submission that gave no details about the deal.
A source close to the situation said the new owners agreed to pump 10 billion rupees ($ 136 million) as working capital to revive the airline. An additional 10 billion rupees will be given to creditors over a period of five years.
Jet – which operated a fleet of more than 120 aircraft serving dozens of domestic destinations and international hubs such as Singapore, London and Dubai – was forced in April 2019 to ground all flights, paralyzed by rising losses as it tried to compete with low cost rivals.
After Jet stopped operations, at least 280 slots were vacant in Mumbai and 160 in Delhi, which were then given to its rivals. The resuscitation plan is also based on getting some of these slots back.
“The plan is to run slowly up and increase capacity gradually as they start again,” the source said. Any resumption of flights is unlikely to occur for at least three to six months.
Since its shutdown, the airline and its lenders had been looking for free agents. Jet’s financial and operational creditors owed nearly $ 300 billion after the operations were halted.
($ 1 = 73,4420 Indian rupees)