Jet Airways to infuse more capital

-    A Monitor Desk Report  Date: 06 October, 2022
Jet Airways to infuse more capital

Dhaka: Jet Airways' new owners reportedly held fresh talks with lenders and agreed to infuse more capital into the business to get operations up and running again.

The airline has faced delays in its launch for various reasons, with its lenders' dissatisfaction regarding certain terms and conditions being one of the main ones.

However, it has emerged that part of the agreed sum could arrive as early as second week of October to get the ball rolling.

While Jet Airways is prepping to start operations in 2022, it is not beginning with a clean slate. The carrier still owes money to several lenders who want assurances regarding their funds.

The process of bringing the airline back to life has been long. In June 2021, the National Companies Law Tribunal (NCLT) approved Jet's insolvency resolution plan, allowing the carrier to restart its revival process.

Jet's new owners, the Jalan-Kalrock consortium, plan to gradually pay off creditors over the next few years and devised a debt settlement plan in December 2021. Back then, the owners were confident of quick progress and hoped to relaunch the airline early in 2022.

However, opposition from lenders, among other things, has delayed those plans with no official date in sight for the launch. In fact, in July, the group of lenders, led by one of India's leading banks, even threatened the carrier with insolvency if it did not pay them the proceeds from rentals of its aircraft. But the latest reports suggest that things could start moving again.

With one roadblock hopefully cleared, Jet will likely sort out other issues, namely getting its fleet sorted, among other things. It has already bagged the AOC, and chances are that it will start operations with Airbus A320 aircraft.

Whether Jet will go for a mixed fleet initially remains to be seen, but chances are high that it could throw in Boeing narrowbodies in the mix, having previously invited applications for pilots trained on both Airbus A320 family and Boeing 737 airplanes.

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