Court demands clarity from DGCA over Jet Airways slots

India’s National Company Law Tribunal (NCLT) has postponed to January 12 a hearing on whether to approve the acquisition of Jet Airways (JAI, Mumbai Int’l) by the Kalrock Capital/Murari Lal Jalan consortium pending civil aviation clarification on the status of the airline’s slots. Indian media said last week that the tribunal had issued a notice to the Directorate General of Civil Aviation demanding clarification as to the status of nearly 700 slots once owned by Jet Airways. In September 2020, the DGCA said they had been temporarily reassigned to other airlines, although it remains unclear if a revived Jet Airways would be entitled to them once more. Before its grounding in April 2019, the carrier had 214 slots at Mumbai Int’l and 116 at Delhi Int’l, two capacity-constrained gateways. The Resolution Professionals, who have formally applied for the NCLT’s approval of the acquisition, said the slots constitute “a vital part” of the resolution plan put forward by the consortium. As such, the NCLT cannot approve the plan without certainty that Jet Airways would be allowed to use them. The new investors hope to restart Jet Airways later this summer.