“The consortium has spent considerable time and expense to revive the airline,” said the person who requested not to be identified. “Though it (paying former employees’ dues) was not part of the resolution plan, we will stay committed to revive the airline.”
Gratuity claims worth of Rs 247.8 crore are payable by the Jalan-Kalrock consortium to former Jet Airways staff.
The airline’s top management including CEO Sanjiv Kapoor and CFO Vipula Gunatileka along with 150 employees remain with the airline despite a pay cut, people aware of the development said.
The consortium of non-resident Indian Murari Lal Jalan and Kalrock Capital Partners Ltd has spent around Rs 350 crore towards performance bank guarantee to banks, cost on staff, IT, and maintaining readiness of aircraft, sources said.
“We believe what we have planned for Jet Airways in terms of customer value proposition can fundamentally change the airline-customer relationship in India from one that is currently often adversarial to one that is positive and a win-win for both,” said Ankit Jalan, a board member of the consortium.
However, the path to revival is getting longer. Despite the National Company Law Tribunal (NCLT) allowing the application of Kalrock-Jalan to implement its corporate insolvency resolution plan for Jet Airways and infusion funds into the grounded airline to take control, lenders have challenged the decision in National Company Law Appellate Tribunal (NCLAT).Lenders have maintained that the condition precedent mentioned in the resolution plan of the consortium has not been met. And therefore, the plan is not valid.
Jalan said he has confidence in the country’s legal system and will not back out from the revival process despite legal hurdles delaying the process.
Experts said it would have been more prudent for the consortium to start a new airline rather than reviving Jet Airways. Jalan doesn’t agree.
