India’s Jet Airways will get an investor agreement under a one-million dollar settlement plan approved by carrier lenders on Saturday.
The plan submitted by a London-based Kalrock Capital agreement and UAE-based businessman Murari Lal Jalan came after months of talks about the airline’s future and confirmed a regulatory submission, which did not provide details about the agreement.
A source close to the situation said the new owners agreed to pump in 10 billion rupees ($ 136 million) as working capital for the airline’s revival. Another 10 billion rupees will be given to lenders over five years.
Airlines’ financial lenders will also get a 10% stake in the company, the source said, although the plan will remain subject to approvals from the country’s bankruptcy court and airline regulator.
Jet – which operates a fleet of more than 120 airlines serving dozens of domestic destinations and international hubs such as Singapore, London and Dubai – was forced in April 2019 to overthrow all flights, crippledly increasing of losses as it attempts to compete with low cost rivals
After stopping the operation of the Jet at least 280 spaces were vacated in Mumbai and 160 in Delhi, which was then given to its rivals. The resurrection plan is also based on the return of some of these spaces.
“The plan is to ramp up slowly and increase capacity gradually as they begin,” the source said. Any continuation of flights is unlikely to happen between three and six months somehow.
Since its operation the airline has stopped and the lenders are looking for suitors. Jet’s financial and operating lenders owed nearly 300 billion rupees after operations ceased.
($ 1 = 73.4420 Indian rupees)