Jet Airways’ Relaunch in Limbo as Creditors Demand AOC from Jalan Kalrock Consortium

Creditors are intensifying their resistance to the revival efforts of Jet Airways (JAI), demanding that the Jalan Kalrock Consortium (JKC) provide a valid air operator’s certificate (AOC). The latest hurdle emerged during a hearing before India’s National Company Law Appellate Tribunal (NCLAT) on November 22, where the committee of creditors (CoC) requested the consortium to furnish an AOC at the next session.

Jet Airways’ AOC lapsed in May 2023, prompting the Directorate General of Civil Aviation (DGCA) to issue an interim AOC with a one-month validity to address corporate resolution issues. However, this interim authorization expired in early September.

Accusing JKC of misleading them and the court, the CoC insists that the production of a valid AOC is crucial evidence of the consortium’s genuine commitment to relaunching Jet Airways. Relations between the CoC and JKC, initially in support of the acquisition and a financial settlement package post the airline’s 2019 shutdown, have significantly soured.

The NCLT had greenlit a resolution plan in mid-2022, backed by the CoC, transferring Jet Airways’ ownership to JKC. However, subsequent legal challenges from the committee and missed payment deadlines by JKC have complicated the process.

Despite the consortium settling a substantial INR 3.5 billion rupees (USD 42 million) to address creditor and lender claims per the mid-2022 NCLT plan, the CoC raised concerns about the funding sources. This led to further questioning of the lenders’ commitment to the ownership transfer.

The bankruptcy court is signaling impatience, setting a decisive deadline of December 11 for both parties to reconvene and settle outstanding issues. With no tolerance for further delays, the court aims to bring closure to the prolonged saga surrounding Jet Airways’ future.