In a development that casts further doubt on the revival of Jet Airways, sources reveal that the Air Operator's Certificate (AOC) of the airline has expired today. The Jalan-Kalarock Consortium (JKC), which had expressed interest in relaunching the airline, is yet to apply for the renewal of the AOC and currently does not meet the eligibility criteria.
The JKC consortium, headed by entrepreneur Murari Lal Jalan and Kalrock Capital, has encountered several obstacles that impede its AOC renewal application. One crucial requirement for renewal is filling vacant key managerial positions, which the consortium has yet to accomplish. Without these positions being filled, JKC does not meet the necessary qualifications for AOC renewal.
Furthermore, JKC's inability to fulfill certain AOC renewal criteria poses additional challenges. One of the major shortcomings is the consortium's lack of aircraft, a vital component for operating an airline. The absence of necessary pilots and cabin crew on the consortium's rolls further disqualifies JKC from eligibility for AOC renewal. Sources indicate that the two Boeing 737 aircraft that were leased by JKC have been reclaimed by the lessors, exacerbating the challenges faced by the consortium.
Despite these concerns, CNBC-TV18 reached out to the Jalan-Kalarock Consortium for clarification on the status of their AOC renewal application. However, JKC has not yet responded to the queries.
JKC missed the May 15 deadline to pay the first tranche to Jet Airways' creditors. Consequently, the consortium sought more time from the National Company Law Tribunal (NCLT) to fulfill its financial obligations.
It is important to note that JKC does not yet have ownership of Jet Airways, further clouding the future prospects of the airline, and renewing this license won't be easy as the airline will have to convince the DGCA about it's ability to fly which in Jet's case may not be possible as yet.
Sources also say that Jet 2.0 team is almost deserted with no senior executive left in the airline after CEO-designate Sanjiv Kapoor quit last month. It has been nearly two years since the NCLT had approved the resolution plan of Jalan-Kalrock but the airline is still far from taking off and hopes to see it in the skies again are only fading.
First Published: May 19, 2023 5:47 PM IST
