STOCK MARKET BSE NSE

Jet cannot have historical right over airport slots: NCLT rejects new owners' appeal

The Jalan-Kalrock consortium, which won the bidding for Jet, had requested that the slots should be allotted to them on a historicity basis.

Published: 01st July 2021 03:11 AM  |   Last Updated: 01st July 2021 09:34 AM   |  A+A-

Jet Airways

Jet Airways aircraft are seen parked on the tarmac at Chattrapati Shivaji International Airport in Mumbai. (File Photo | PTI)

By Express News Service

NEW DELHI:  In a major setback to the new owners of Jet Airways, the carrier will not be allowed to claim a historical right over its earlier airport slots.

The Mumbai bench of the NCLT rejected the new owners’ appeal on slots on Wednesday and said that these slots cannot be allocated to the Corporate Debtor beyond the procedure prescribed under the guidelines.

Restoration, it said, has to be worked out within the parameters prescribed under the guidelines. 

“The facts and circumstances would indicate that, presently, the slots cannot be restored to the Corporate Debtor on a historic basis. The thumb rule being ‘use it or lose it’,” stated the order from the two judge-bench comprising Justices Janab Mohammed Ajmal and V Nallasenapathy.

“Even otherwise, the Corporate Debtor immediately after the approval of the Resolution Plan would not be utilising all the slots. It can only seek slots as and when it had the Aircraft and the attendant wherewithal and logistical support in place, which according to the Resolution Plan would be in phases,” it added.

The Jalan-Kalrock consortium, which won the bidding for Jet, had requested that the slots should be allotted to them on a historicity basis.

Jet Airways had about 700 slots across airports such as Mumbai and Delhi, a highly valuable asset for any airline. These slots were allocated to other airlines after Jet suspended operations in April 2019.

In the months that followed, Jet was admitted under the Insolvency and Bankruptcy Code (IBC) and the Committee of Creditors (CoC), led by the SBI, approved the resolution plan submitted by a consortium of UK’s Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan in October 2020. 

The resolution professional Ashish Chhawchharia had stated last week that if everything goes well, Jet Airways could return to the skies by the end of 2021. 



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp