JET Airways: Law Tribunal grants six more months to return Jet – mssewb.org

This time: Jet Airways got another lifeline to survive. The National Company Law Tribunal (NCLT) on Friday gave the Jalan-Kalrock consortium another six months to take effective control of Jet Airways after settling all dues. Jet Airways has been directed to settle the amount due to its creditors till November 16 last year. State Bank of India and other lenders opposed the deadline extension. The Jalan-Kalrock consortium sought directions from the NCLT’s Mumbai bench to take control of the jet. On the other hand, the airline said the consortium did not fulfill three of the five conditions in the settlement plan. Last Tuesday, the Jalan-Kalrock consortium told Asish Chacharia, authorized representative of the airline’s monitoring committee, not to issue any written message on behalf of the jet without the approval of all committee members.

Earlier, Ashish wrote a letter to Sanjeev Kapoor asking him not to refer to himself as the CEO. Because, he is only CEO-designate. The consortium has sought a copy of the minutes of the meeting in which the matter of Sanjeev Kapoor was discussed in the JET Vigilance Committee. At present, the affairs of Jet Airways are looked after by a seven-member monitoring committee. Apart from Ashish, the committee has three representatives each from consortium and financial creditors. In October 2020, the airline’s committee of creditors approved the resolution plan of the Jalan-Kalrock consortium. The Jalan-Calrock consortium was declared the winner after Jet’s bankruptcy proceedings began in June 2021. All Jet Airways services have been suspended since April 2019.

However, many senior executives, pilots and cabin crew have already left the company due to uncertainty over the re-flight of the jet. According to sources, Mark Turner, Jet Airways’ vice president of in-flight services, was placed on unpaid leave last month. Sanjeev Kapoor and Chief Financial Officer Bipula Gunatileka, however, remain with the company on reduced salaries. Many of the pilots and cabin crew who were on standby have left the jet and joined other airlines, informed sources said. Some managerial level staff are on unpaid leave. On the other hand, many of those whose salaries have been cut have resigned, according to sources.

In November last year, Jet Airways cut up to 50 percent of the salaries of several of its employees. Besides, some workers have been sent on unpaid leave. State Bank of India, which leads Jet’s lender banks, said Jet’s new buyer, the Jalan-Calrock consortium, will have to pay an additional Rs 250 crore to the workers’ pension fund. However, the Jalan-Kalrock consortium stated that this additional amount was not in the settlement plan approved by the NCLT last year and was instead deducted from the dues of the banks. Jalan-Kalrock Consortium is also willing to pour in new funds if it does not get control of Jet. So far, the Jalan-Kalrock consortium has reportedly spent about Tk 760 crore in efforts to get the jet back into the air.