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Jet Airways final revival order out, slot allotments not on basis of historic rights

In a recent affidavit submitted to the bankruptcy court, the MCA and DGCA had said that Jet Airways could not not claim historicity to obtain the slots and that allocation of slots would be done in accordance with the existing guidelines.

June 30, 2021 / 06:04 PM IST
Jet Airways was grounded in April 2019 due to lack of funds and insolvency proceedings against it began in June of the same year.

Jet Airways was grounded in April 2019 due to lack of funds and insolvency proceedings against it began in June of the same year.

The National Company Law Tribunal (NCLT) has issued the final revival order for Jet Airways, the carrier which was grounded in 2019 due to strained financial condition. As per the revival order, operating slots would be allotted to the airline in accordance to the the existing norms, and not on the basis of historic rights.

"The Resolution Plan submitted by consortium of Murari Lal Jalan and Florian Fritsch is hereby approved. It shall become effective from this date and shall form part of this order," the NCLT said, adding that its order would be binding upon all stakeholders, including the central and state governments.

The rescue plan was presented last year jointly by Florian Fritsch-headed Kalrock Capital Management Ltd, a London-based financial advisory and Murari Lal Jalan, a Dubai-based businessman. It was approved on June 22 by the NCLT.

The Jalan-Kalrock consortium is believed to have offered Rs 1,183 crore in the form of repayment to financial creditors, employees and staff of Jet Airways, over a period of five years, CNBC TV-18 had reported.