Jet Airways revival in doubt after resignation of CEO designate
The CEO-designate of Jet Airways 2.0, Sanjiv Kapoor, has resigned, dealing a significant blow to the airline’s revival efforts. Kapoor, an aviation veteran, had only joined Jet Airways on 4 April 4, 2022, and will serve until May 1, 2023. The airline, which was grounded in April 2019, has been facing numerous challenges, including ongoing issues with lenders and a series of top management resignations.
Jalan Kalrock Consortium (JKC), which is overseeing the airline’s revival, said in a statement that they remain committed to bringing Jet Airways back into operation and will oversee the CEO-designate responsibilities until a suitable replacement is found.
However, many aviation experts and officials are skeptical about the airline’s chances of revival, citing a lack of aircraft, multiple post holders, and the expiry of the airline’s Air Operators Permit (AOP) on May 19th.
Jet Airways was given 180 days to pay Rs 180 crore to its creditors and Rs 250 crore to its former employees, but the consortium has yet to make any payments, and the deadline is fast approaching.
The Jalan Kalrock Consortium emerged as the successful resolution applicant after the NCLT approved the former’s Rs 1,375 crore resolution plan in July 2021. Of the Rs 1,375 crore, Rs 475 crores will be used for payment to stakeholders from successful resolution applicant’s cash infusion, and Rs 900 crores will be infused by new management for capital expenditure (CAPEX) and working capital requirements for smooth functioning of the corporate debtor.
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Despite almost two years since the resolution plan has been approved, the successful resolution applicant has not been able to make the payments to its creditors and employees of Jet Airways. The consortium has been at loggerheads with the Monitoring Committee which comprises lenders and the resolution professional.
Early this year, the Monitoring Committee claimed that the successful resolution applicant did not fulfil the five conditions precedent prior to or before the expiry of the stipulated period of 270 days from the approval date of the resolution plan.
The Monitoring Committee further alleged that the consortium was continuously and on several occasions misleading the NCLT and the NCLAT with submissions on fulfilment of the conditions (despite being fully aware of the Monitoring Committee’s disapproval), and on that false premise, attempted to wrongly obtain control and management of Jet Airways.
Also Read: Doubts that lenders of Jet Airways have about Kalrock consortium’s revival plans
