DGCA extends air operator certificate of Jet Airways
In a new lease of life to Jet Airways and its new promoters, the Directorate General of Civil Aviation (DGCA) has extended the air operator certificate (AOC) of Jet Airways until September 3, 2023. This is only for the limited purpose of completing the ongoing corporate insolvency resolution process (CIRP) for the airline.
Jet Airways has been grounded since April 2019 due to financial stress. The Jalan-Kalrock Consortium (JKC) was declared the successful resolution applicant for Jet Airways in 2022. However, the airline has not been able to resume operations due to differences between JKC and the airline’s Committee of Creditors (CoC).
The DGCA’s decision to extend the AOC is subject to certain conditions, including recertification of the airline as per laid-down procedures and demonstration of compliance with all applicable regulatory requirements. The airline will also have to submit a firm action plan for the revival of operations.
The extension of the AOC is seen as a positive step for Jet Airways, as it gives the airline more time to complete the CIRP and resume operations. However, there are still a number of challenges that need to be addressed before Jet Airways can return to the skies.
JKC has said they have the Air Operator’s Certificate (AOC) for 2022-23, but they cannot start operations because the lenders have raised objections to their ownership. They also said that if they do not start operations soon, the slots allocated to them will be reassigned to others.
The lenders have said that JKC has not fulfilled its commitment to inject funds into the airline, and that the company will have to go through liquidation if they want to recover their dues. They have also said that the AOC’s validity will soon expire, and that it is doubtful whether JKC can start operations.
Jet Airways lenders had urged the Supreme Court to commence the winding-up process for the grounded airline, stating that the resolution plan approved by the NCLT was unfeasible.
The NCLAT had given the consortium of Murari Lal Jalan and Kalrock Capital (SRA) three more months to infuse capital in the airline.
Also Read: Lenders creating obstacles in revival of Jet Airways
