Jet Airways’ international traffic rights fly to other carriers; govt to review after 3 months

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Updated: June 20, 2019 4:16:47 PM

The Ministry of Civil Aviation has allotted the Jet Airways rights for international air traffic to Indian carriers on a temporary basis.

Jet airways bankruptcy process in nclt will start from wednesdayEarlier, Jet Airways was dragged to NCLT by SBI.

Naresh Goyal-founded Jet Airways has now lost its international traffic rights to other domestic carriers as the beleaguered airline awaits its fate from NCLT today, CNBC TV18 reported. The Ministry of Civil Aviation has allotted the Jet Airways rights for international air traffic to Indian carriers on a temporary basis, the report said citing unidentified sources. The Ministry will review the situation after three months. The grounded airline also awaits the verdict from the National Company Law Tribunal on State Bank of India’s application requesting insolvency proceedings against Jet Airways.

Before its grounding, Jet Airways operated daily flights to countries in Europe, South East Asia and West Asia. Jet Airways had voiced their concerns before stating that not only domestic carriers but foreign airlines will also jump on the opportunity to make the best of the void. However, the same remained a concern for Jet Airways employees as  there was no clarity as to what happens had Jet Airways revived.

Meanwhile, the NCLT has reserved order on SBI’s insolvency plea against Jet Airways and will pass the order in the evening on 20 June 2019, TV news channels reported. After months of waiting for a resolution plan to materialize and an investor to float the airline again, the lenders consortium was forced to drag the grounded airline to NCLT for insolvency proceedings. In a statement, the lenders consortium said that the sole prospective investor in Jet Airways has asked for SEBI exemption and insolvency proceedings is the best way forward. Earlier, two operational creditors Shaman Wheels and Gaggar Enterprises also moved NCLT. Jet Airways owes over Rs 8,500 crore to the 26 lenders.

Recently, Jet Airways also saw the exit of two Independent Directors Ashok Chawla and Sharad Sharma as the board failed to comply with the provisions of the Companies Act and appoint additional directors, Jet Airways announced in a BSE filing.

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