Summary
- Jet Airways has received a cash injection of over $42 million, completing the process initiated by the Jalan Kalrock Consortium to revive the airline.
- The consortium is determined to relaunch Jet Airways in 2024, after a failed attempt in 2022.
- While the revival process has faced setbacks, such as losing its two-digit IATA code, the consortium has achieved key milestones like renewing the carrier’s Air Operator’s Certificate.
Former Indian airline Jet Airways has taken its latest step towards a potential relaunch, following the completion of a cash injection worth more than $42 million. The money has come from the Jalan Kalrock Consortium, which purchased the carrier in the wake of its collapse, with a view to getting it back up and running.
Money talks
According to reports by Reuters, the cash injection, which is worth 3.5 billion Indian Rupees ($42.14 million), was structured through a ‘court-approved plan.’ Having already infused some 2.5 billion Rupees into the defunct airline, the Jalan Kalrock Consortium announced that the last one billion had been transferred, thus completing the cash injection process. The group said in a statement that:
“With this infusion (…) all commitments by JKC now stand fulfilled to take control of the iconic airline. (…) The consortium’s strategy to revive the airline remains unaltered. The new promoters are determined to re-establish the operations of the airline up and running in 2024.”
Photo: Phuong D Nguyen/Shutterstock
The cash injection process has been a long one, with FlightGlobal noting that the consortium first received the court approval to carry out its resolution plan back in June of 2021. Now, more than three years later, a key milestone has been reached, with India Today reporting a 5% rise in Jet Airways’ shares as a result.
See you next year!
As noted earlier in the consortium’s statement, the group is aiming to get Jet Airways back in the air in 2024, following a failed restart in the first quarter of 2022. While the exact date of the carrier’s relaunch remains unknown, its owners have committed to providing “further announcement (…) in the coming weeks.
The road to restarting an airline is a long one, but this is not the only major milestone that Jet Airways has seen in recent times. Indeed, at the start of August 2023, the Jalan Kalrock Consortium succeeded in getting the carrier’s Air Operator’s Certificate (AOC) renewed, three months after it initially expired in May this year.
Photo: achinthamb/Shutterstock
That being said, the revival process has hit a few bumps in the road. At the start of this month, the carrier (along with fellow Indian operator Go First) lost its two-digit IATA code, which plays a key role in the operations of any airline.
Additionally, Simple Flying reported earlier this year that the consortium’s cash was due by August 31st. As such, it will be interesting to see if there are any ramifications for the fact that the money has ultimately arrived almost a month late.
A brief history of Jet Airways
The original Jet Airways was founded in April 1992, and commenced operations just over a month later, in May 1993. After slow and steady growth in its first decade, the carrier began flying internationally in 2004, and, as Reuters notes, eventually had the second-largest share in the Indian airline market. However, unpaid fees and rejected emergency funding forced it to cease operations in April 2019.
What do you make of this latest cash injection? Did you ever fly with Jet Airways back in the day? Let us know your thoughts and experiences in the comments!
Sources: FlightGlobal, India Today, Reuters