There are hopes that India’s Jet Airways will return to the skies next year following an additional equity injection from the Jalan-Kalrock consortium, paving the way for the group to take full control of the carrier.
The consortium has confirmed that a further INR1 billion ($12 million) has been injected on Sept. 29 for payments to creditors. This means the partnership has fulfilled a commitment to infuse INR3.50 billion to revive the airline as per a court-approved resolution plan.
Jalan-Kalrock—which comprises United Arab Emirates-based businessman Murari Lal Jalan and London-headquartered asset management company Kalrock Capital—was selected to take over Jet Airways in 2020, but the process has been delayed amid disputes with creditors.
The consortium had originally agreed to inject INR3.50 billion by Aug. 31, but the payment deadline was recently extended to Sept. 30 by India’s National Company Law Tribunal. Jalan-Kalrock says it has now met its financial obligations and is ready to “take control of the iconic airline.”
“The consortium’s strategy to revive the airline remains unaltered,” a statement says. “The new promoters are determined to reestablish the operations of the airline up and running in 2024.”
At its peak, Jet Airways was India’s second-largest airline by market share and boasted a fleet of 120 aircraft, flying 600 domestic and 380 international routes. However, the carrier’s financial struggles were exacerbated by the rapid growth of low-cost rivals in India, coupled with a rise in fuel prices and an unfavorable exchange rate. Operations were suspended in April 2019.
After a lengthy search for new investors, Jalan-Kalrock was selected as the winning bidder by creditors in October 2020, and a court panel approved the takeover and restart plan in June 2021. India’s Directorate General of Civil Aviation granted a new air operator certificate (AOC) in May 2022, but it expired before Jet Airways could resume flights. The carrier then had to reapply for an AOC, securing a fresh license in July 2023.
Prior to the airline’s insolvency, Jet Airways had a 14% capacity share of available seats in India’s domestic market in 2018, second to IndiGo. However, its share had been steadily eroded in prior years, dropping from 22% in 2012.
Looking at its largest routes by capacity in 2018, its top three were all domestic, led by Mumbai-Delhi with 1.98 million available seats. In second was Mumbai-Bengaluru with 1.28 million, and third was Mumbai-Chennai.
Jet Airways was also the largest international carrier from India during the year, OAG Schedules Analyser data shows, accounting for 12.4% of all departure seats. Air India was second on 10.7% and Emirates third on 7.8%. Mumbai-London Heathrow saw the most capacity deployed, followed by Mumbai-Dubai.
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