Jet Airways’ launch could be delayed further as recent developments regarding unpaid dues of former employees seem to have caused a hindrance. The airline’s new owners, the Jalan-Kalrock consortium, have been trying hard to resolve issues from the carrier’s past, but the road to relaunch looks trickier than previously anticipated.
Delayed
Jet Airways’ new team is in the process of resolving several issues from the airline’s past, pushing its launch dates several times so far. It was hoped that the carrier would take to the skies earlier this year, but months after receiving the AOC, there has been no date set for restarting operations.
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To be fair, the new owners have taken on the challenging task of resurrecting an airline with a troubled past. Nothing like this has been done before, and, as such, there is no set template that one could follow in a situation like this.
BusinessLine quotes a spokesperson of Jet to be saying,
“Reviving and re-starting an airline has no precedent in India. It is taking a little longer than we may have originally hoped, but we are getting close. It is a complex process, and we do not want to act in haste and repent later.”
Unpaid employee dues
As reported earlier, the National Company Law Appellate Tribunal (NCLAT) of the Indian government has directed the Jalan-Kalrock consortium to clear unpaid provident fund (PF) and gratuity dues of its former employees. According to sources, this is what has caused the latest delays in the plans.
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As highlighted by the BusinessLine report, the NCLAT stated that Jet’s resolution plan did not include the total provident fund amount. While the principal amount of the PF had been considered, the order of levying of interest by the PF Authority following the resolution process was not.
The new owners did allocate PF and gratuity funds in the resolution plan, but a source commented,
“If the claims weren’t admitted, or rejected was not something that the consortium was party to. It is one of the conversations that is currently ongoing with the lenders, causing the delay.”
Roadblocks
Jet had hoped that it would start the ticketing process of its flights in the second half of October, but there are several issues to be tackled before that can happen. As reported earlier, the airline’s new owners had agreed to infuse more capital into the business, with part of the agreed sum expected to arrive days later.
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But according to sources, the first tranche has still not been paid out. Jet is trying to meet the conditions put forward by its lenders to complete the transfer of ownership, which is said to be in the final stages.
It is also trying to negotiate agreements with aircraft and engine makers to secure a satisfactory deal to kickstart operations. As many former Jet loyalists wait for its return, here’s hoping its new owners can resolve the ongoing issues soon.
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Source: BusinessLine
Source: simpleflying.com
