We have heard little from Jet Airways in the days after they received the go-ahead from the NCLT about their plans to take over the assets of the currently grounded airline, where creditors have had to take a massive haircut to hand over the airline for resurrection. Reading up the initial plans, one knows that the airline will refund cents on the dollar on tickets to those who had lodged a claim for a refund in time. Everything else has been more in the air so far, rather than on air.
Jalal Kalrock Consortium
Today, Jet Airways’ new owner-to-be, the Jalan Kalrock Consortium, have outlined some of the plans they have for the airline. But before we go into it, a bit about the people behind the bid.
Murari Lal Jalan is the lead member and proposed promoter of Jet Airways, and he currently has various businesses, including paper manufacturing, mining, trading, FMCG, renewable energy among others. He is a non-resident Indian, and his bid for Jet Airways is the one determined to be the winning bid by the banks who were owed money, and also has the blessings of the NCLT, which is the law tribunal that had to approve the
Kalrock Capital is an investment group founded by serial entrepreneur Florian Fritsch. The group provides investment and advisory services in financial, marketing, managerial and legal matters The group has been investing successfully into alternative asset classes over the past 20 years, both as a principal investor, as well as in co-investment syndicates.
The partnership between these two is called the Jalan Kalrock consortium which is slated to take control of Jet Airways.
Jet Airways to restart Indian operations in Q1 2022
Jet Airways is all set to resume domestic operations in Q1 2022, according to the Jalan Kalrock Consortium, the successful resolution applicant of Jet Airways. The first flight would be between New Delhi and Mumbai, as per a statement from the Consortium issued today.
As per Jalan Kalrock, the process of reviving the grounded carrier is on track with the existing Air Operator Certificate (AOC) under process for revalidation. The Consortium is working with the relevant authorities and airport coordinators on slot allocation required airport infrastructure and night parking. As per a statement from Jalan Kalrock, members of the Jalan Kalrock Consortium along with Capt. Sudhir Gaur, acting CEO of the airline have visited key airports last month and held productive meetings with them.
Further, Mr Jalan, who will become the non-executive Chairman of Jet Airways has talked some more about the plans of the airline’s resurrection and there are some interesting tidbits there. As per him, once domestic operations start in the January to March period of 2022, short-haul international operations are expected to launch in the July-December 2022 period. Call it lofty ambition, but the airline plans to have over 50 aircraft in the first three years after the restart, scaling up to over 100 in the five-year time horizon. Per Mr Jalan, the aircraft will be leased on a long term.
Jet Airways will move headquarters to Delhi
Coming from the statement from the acting CEO of Jet Airways, Captain Sudhir Gaur, he states that Jet Airways will move to Delhi NCR as their new headquarters, which should not be surprising since most of the airlines in the country are based here (IndiGo, SpiceJet, Vistara and Air India), which makes it easier to poach talent if needed. However, Mumbai will continue to be the training centre for Jet Airways, with the Kurla-based training centre which they will acquire.
Jet Airways to hire over 1000 people
As per the initial management team of the airline, Jet Airways’ new team has already hired 150 full-time employees on its payroll and is looking to onboard another 1,000 employees by March 2022 across functions.
The Jalan Kalrock consortium expects that Jet Airways will be resuming operations by January – March 2022 is the timeline that the new owners of the airline expect for it to take flight. They expect a fleet of 50 aircraft in three years, and 100 in a timeline of five years from the date they restart operations. This is the first time they have publicly committed to a timeline, so let us hope they buffered in enough time to account for unexpected contingencies in this plan of theirs.
What do you think of the plans of the new promoters of the airline, the Jalan Kalrock Consortium?
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