Jalan-Kalrock asks RP not to communicate on behalf of Jet Airways

The Jalan-Kalrock Consortium (JKC) has written to Ashish Chhawchharia, the resolution professional (RP) and representative of the monitoring committee of Jet Airways, to refrain from communicating on behalf of Jet Airways till authorised by all required members of the committee.   

JKC was responding to a letter sent by Chhawchharia on December 28, 2022, to CEO-designate Sanjiv Kapoor, asking the airline to refrain from calling Kapoor its CEO. Chhawchharia’s letter followed another email sent to the RP, seeking clarification over the precise designation of Kapoor.  

“There exists no monitoring committee resolution which authorises you to write to Mr Kapoor. Your letter shall be considered as null and void and you are advised to refrain from communicating on behalf of Jet Airways until authorised by all required members of the MC,” the JKC letter stated. Kapoor, along with other employees, continues on the payrolls of the Successful Resolution Applicant (SRA) and shall be transitioned to the payrolls of Jet Airways after the transfer of ownership to the SRA, it added.

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“All employees have been employed on the payrolls of the SRA (successful resolution applicant) on the advice of monitoring committee lenders to find alternative employment solutions when those lenders were not agreeable to new employees joining the payrolls of Jet Airways before transfer of ownership,” JKC said.

Replying to Chhawchharia’s letter, JKC said in a statement last week that Kapoor has been the CEO-designate since the time he came on board in April last year, as the ownership transfer of Jet Airways is yet to be completed. JKC stated that Kapoor received necessary security clearance from the civil aviation ministry and requires no further approval from any statutory authority.

“JKC remains committed to the revival of Jet Airways and successfully implementing the approved resolution plan and seeks constructive support from all stakeholders, including you. Thus, as authorised representative of the monitoring committee, you are requested to act on matters which are authorised or otherwise approved by the committeee jointly,” JKC added in the latest letter.

A US citizen, Kapoor took over as CEO-designate at Jet Airways after briefly working at Oberoi Hotels & Resorts as its president. Prior to that, he was the chief commercial officer of Vistara and chief operating officer of SpiceJet.