An Indian bankruptcy court ruled Jet Airways India Ltd. can resume operations under a new owner more than two years after it collapsed, according to Ashish Chhawchharia, the court-appointed professional running the carrier’s insolvency.
Jet Airways, once India’s biggest private carrier, needs to apply for slots within 90 days and the aviation regulator will make a final decision on allotting them, CNBC-TV18 said in an earlier report on the ruling Tuesday.
The airline fell into bankruptcy in 2019 after failing to repay debts. A rescue plan was laid out last year by Dubai-based businessman Murari Lal Jalan and Kalrock Capital Management Ltd., a London-based financial advisory and alternative asset manager.
They pledged in December that Jet Airways would fly again by this summer, operating its historic domestic slots as well restarting international routes. The revival plan included a dedicated freighter service and hubs in smaller cities beyond Delhi, Mumbai and Bengaluru.
Even before Covid-19 crushed demand for air travel, India was a tough place to make money in aviation. Bruising fare wars and high costs made it difficult for many carriers to survive. Kingfisher Airlines Ltd., once the country’s second-largest domestic carrier, collapsed in 2012, and flag carrier Air India Ltd. is saddled with debt and has been searching for a buyer for years.
Jet Airways has almost 21,000 creditors seeking claims of around $6 billion. It has lost most of its landing slots in the time it hasn’t being flying.
Investors remained optimistic about the airline successfully emerging from a restructuring, sending its shares soaring 316% in 2020 despite the industry being plunged into crisis. Jet Airways rose 5% on Tuesday following a similar gain the previous day, trimming its 2021 loss to 18%.
