Jet Airways is expected to take off by the end of this year, after a long period of a slump. All Jet Airways flights were grounded in April, and the company owes banks more than Rs. 8000 crore, and public sector lenders are also owed an enormous amount.
Jet Airways All Set To Resume Flights By The End Of The Calendar Year
As per earlier reports, rising fuel costs and market domination by Indigo have been attributed to Jet Airways’ staggering losses in the last two years. In FY 2018, Jet Airways posted a loss of Rs 767 crore. Meanwhile, by the end of the first quarter of 2018, it is estimated that they will suffer a loss of Rs 1000 crore by the time FY ends.
Also, the airline sent a letter to all employees informing them that the company will close in 60 days unless salary cuts are implemented.
However, things are looking up for the airline now. The company’s revival plan has been accepted by the National Companies Law Tribunal (NCLT). Additionally, a consultant collaborating with the company has also stated that the new routes will be set up within the next 90 days.
NCLT has given the Directorate General of Civil Aviation and the Civil Aviation Ministry 90 days to allocate slots to the airline.
Ashish Chhawchharia, Head of Restructuring Services at Grant Thornton Advisory, said, “Based on discussions we have been having, the order has been received today.” We can probably expect that Jet will be back in the skies by the end of this calendar year.
Jet Airways Might Not Start Off With 120 Aircraft Crew
The company of Chhawchharia has been entrusted with the duty to look after the airline’s restoration by a consortium of London-based Kalrock Capital and the UAE-based businessman Murari Lal Jalan.
He also spoke on the staff that the airline would re-employ, saying that Jet Airways might not start off with a 120-aircraft crew from day one.
He pointed out that discussions are ongoing with the airports, the Aviation Ministry, and the DGCA over slots at airports and various domestic and international routes.
As we previously mentioned, Mumbai, Delhi, and Bengaluru will remain the Jet 2.0 hubs. The carrier will also support Tier 2 and Tier 3 cities with the help of sub-hubs and boost the economy in these cities.
In addition, Jet 2.0 will focus on increasing cargo services, including a dedicated freighter service, an underserved market currently.
The new plan has already been accepted by the airline’s creditors, submitted by the consortium. There are 21,000 creditors seeking Rs. 44000 crore in claims, and nearly all of its landing slots have been confiscated.