New Delhi: Grounded airline Jet Airways, whose revival plan was approved by the National Company Law Tribunal (NCLT) on June 22, could shake up India's airline market if it succeeds in resuming flights, said aviation consultancy and research firm CAPA on Tuesday.
"If Jet succeeds in resuming flights, its market re-entry will be one of the potentially significant development that could shake up India's airline market. Consolidation, ownership reshuffles and market share expansion by some players are all on the cards for the post-pandemic industry landscape," CAPA said in the report.
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On June 22, the NCLT cleared Jalan Kalrock Consortium's resolution plan for the bankrupt Jet airways under the insolvency law. The Mumbai bench of the tribunal directed the consortium to get the required approval and licences to restart the airline within 90 days. The consortium purposes to invest Rs 600 crore in the first two years to repay creditors and acquire an 89.79 per cent stake in the carrier.
"The favourable decision by the National Company Law Tribunal is undoubtedly a major milestone for Jet Airways and its new owners. Although the court ruling did not deliver all that the airline's backers had hoped for regarding airport slot claims, it was still enough for them to confirm that they will proceed with the relaunch," said CAPA. "But first they have other significant hurdles to overcome, and agreements to negotiate, to meet operational requirements," the aviation consultancy added.
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Notably, a seven-member monitoring committee, including members appointed by the winning bidder Jalan Kalrock Consortium and the leaders, will manage the affairs of the airline till the end of the resolution process. According to CAPA, it will be a very difficult airline in its second iteration, and it will also confront a vastly changed Indian airline market.
