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Jet Airways: Kalrock-Jalan consortium to pay Rs 1,183 cr in 5 years to creditors

The consortium has also offered to buy 51% of Etihad Airways’ stake in Intermiles

Jet Airways staff protest Delhi Arvind Jain [File] Staff of Jet Airways at a demonstration in Delhi | Arvind Jain

The Kalrock-Jalan consortium will pay Rs 1,183 crore over five years to employees, workmen and financial creditors of Jet Airways. According to an Economic Times report, this is only 9 per cent to 14 per cent of what they had claimed, according to the resolution plan that was presented to India’s bankruptcy court on Tuesday.

In addition to the resolution plan, the consortium has also offered to buy 51 per cent of Etihad Airways’ stake in Jet’s loyalty programme, Jet Privilege now renamed Intermiles.

While the airline's workmen and employees will get Rs 113 crore against the claim of over Rs 1,200 crore in first 180 days, its financial creditors will get Rs 1,010 crore over five years against a claim of Rs 1,200 crore. While employees will get Rs 11,000, workmen will get Rs 10,200, some phones and stationary and free tickets of Rs 10,000 for travel. The consortium will pay the money from internal accruals, sale of assets of Jet Airways and cash flow after the resumption of operation, the report said citing the resolution plan presented in NCLT.

Jet Airways was admitted to the National Company Law Tribunal (NCLT) in June 2019 for insolvency proceedings. The defunct airlines' Committee of Creditors had approved Kalrock-Jalan consortium's resolution plan last year. 

Recently, the Jalan-Kalrock Consortium had told the media that it expects to restart operations of the defunct airline in four to six months after receiving approval from the NCLT for its resolution plan. 

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