Jet Airways to resume flying by September in Indian market

Bloomberg

Jet Airways India Ltd, the erstwhile bankrupt carrier undergoing a court-monitored resolution, is expecting to return to the skies in the quarter to September as competition in India’s cutthroat air travel market intensifies with new entrants.
Jet Airways got its flying license from the Directorate General of Civil Aviation (DGCA) after successful proving flights — or test flights with
aviation regulator officials on board — over two days, the airline said in a statement. The flying permit validated the airline’s operational readiness, marking its revival in a “new avatar with fresh funding, changed ownership, and new management,” according to the statement.
Jet Airways will unveil its plans for fleet, network, a loyalty program and the overall product in the coming weeks, according to the statement. The carrier will also announce its senior management next week and begin hiring for operational roles with former Jet Airways staff getting preference, it said.
The comeback of Jet Airways, which folded up under mounting debt in 2019 and entered a reformed insolvency resolution process, is a milestone for India’s bankruptcy laws. However, Jet’s revival will come at a cost for lenders, who will recoup only 5% of what they are owed.
The new owners — Dubai-based, Indian-origin businessman Murari Lal Jalan and Florian Fritsch, the chairman of London-based financial advisory and alternative asset
manager Kalrock Capital Management Ltd — have pledged to make investments of as much as $120 million, CEO Sanjiv Kapoor said.
Jet Airways is entering India’s notoriously tough market, which is set to become more crowded with billionaire Rakesh Jhunjhunwala-owned Akasa Air preparing to fly later this year.
It will also face stiff competition from the Tata Group’s growing aviation empire that now constitutes three airlines — Air India Ltd, Singapore Airlines Ltd’s local joint venture Vistara and AirAsia India.