The NCLT-defined deadline of 180 days for the Jalan-Kalrock Consortium (JKC) to pay the creditors and employees of the erstwhile Jet Airways will get exhausted in less than four weeks even as the issue of ownership transfer of the airline lingers on.

JKC has to pay Rs 185 crore to the lenders of the grounded airline in addition to payments, estimated to be around Rs 250 crore, due to the airline’s former employees by May 14.

The January 13, 2023, order of the National Company Law Tribunal (NCLT) stated that JKC had fulfilled all the conditions precedent mentioned in the resolution plan, paving the way for transfer of ownership of the airline from the lenders to the winning bidder.

Also Read: Jet Airways set to fly again under Jalan-Kalrock ownership

But the lenders, who have been reluctant to transfer ownership of the airline to JKC, had approached the National Company Law Tribunal (NCLAT) in March only to return disappointed after the tribunal refused to grant any interim relief against the NCLT order.

But besides the non-payment of dues to Jet Airways’ lenders and employees, JKC is also challenged by the issue of expiry of air operator’s permit (AOP) due next month. The AOP, which essentially allows an airline to start commercial operations, has to be renewed before May 19, 2023, by Jet Airways 2.0. Failing this, it will have to reapply with the regulator.

“The DGCA (Directorate General of Civil Aviation) had sent a notice to Jet Airways in February to know if they have the intention of starting the operations. They had assured the regulator that required funds were being arranged. But nothing changed,” said an industry source.

An email sent to JKC seeking updates on the company’s plans remained unanswered at the time of going to press.

“To start flight operations, it takes 1-2 months and before that to happen the airline needs to take slots, arrange ground handling, aircraft parking and then commence bookings. Just to take a slot takes two months. The Delhi-Mumbai route will have no slots available now,” said an industry expert.

While Jet Airways got the AOP with the help of two aircraft in its fleet in May 2022, the company presently has only one aircraft in its fleet, a Boeing 737-800, as per the DGCA.

Also Read: NCLAT refuses relief to SBI in Jet’s transfer of ownership

Planned as a full-service carrier, Jet earlier planned to commence commercial operations around September-October of 2022. However, as the lenders continued to protest, the airline never changed ownership.

“It takes 6-9 months for a new operator to meet the requirements for the AOP. It will not be difficult to renew Jet’s AOP since everything has already been approved. They have to only follow the process,” said a former head of an airline.

JKC has shown strong reluctance in infusing funds beyond the Rs 1,375 crore as mentioned in the resolution plan. This includes Rs 475 crore payments to creditor, including Rs 380 crore earmarked for the financial creditors, and the balance as capital infusion.

The Naresh Goyal-founded airline, which was once the biggest carrier in India, halted operations on April 17, 2019, due to rising financial liabilities. The airline was taken to bankruptcy proceedings by its lenders soon after.