When Sanjiv Kapoor joined Jet Airways in April 2022, many people believed he would bring the carrier back to its former glory. The full-service airline Jet Airways was shut down on April 17, 2019, after more than 25 years of business, due to a serious cash shortage.
Sanjiv Kapoor, who recently left the position of CEO-designate at the cash-strapped airline Jet Airways, has joined Saudi, a company located in Jeddah, where he will serve as the director general’s advisor. Kapoor acknowledged his appointment in a piece published in The Economic Times.
One of Saudi Arabia’s two main airlines, SAUDIA, has been developing an expansion strategy. On March 21, SAUDIA announced that it was planning to expand the SAUDI Group Network by 25 new locations in 2023.
Additionally, it was said that in keeping with its growth objectives, it will purchase 39 wide-bodied 787 Dreamliners from Boeing.
Kapoor left his position as CEO-designate of Jet Airways last month. The same was verified in a formal announcement by the Jalan-Kalrock consortium (JKC), which had taken over the resolution of the defunct airline Jet Airways.
Ankit Jalan, a board member for JKC, said of Sanjiv, “Sanjiv joined us in April 2022 to lead the revival of Jet Airways, and he drove the business and launch plan as we prepared to relaunch the commercial operations of Jet Airways.” During his time at JKC, Sanjiv made a significant contribution to the Jet Airways launch preparations, and we are grateful for his efforts. We also wish him well in all of his future undertakings.
The name of Jet Airways’ new CEO will soon be released by JKC.
It goes without saying that JKC is committed to the rebirth of Jet Airways, but the court-approved procedure for Jet Airways’ restoration has taken longer than we had anticipated.
We are in the final stages of concluding the sale of Jet Airways to JKC. Once that transaction is complete, we will pay any outstanding debts owed to prior creditors in accordance with our Resolution Plan, which has been approved, and we will soon resume Jet Airways’ commercial operations in accordance with our re-launch plans, said Jalan.
The airline had previously stated that Kapoor will continue to serve as the organization’s CEO-designate until the lenders transferred control of the airline to the group that consists of the UK-based Kalrock Capital and Dubai-based Murari Lal Jalan.
The full-service airline Jet Airways was forced to cease operations on April 17, 2019, due to a serious cash shortage. The insolvency procedure started in June 2019 and ended on June 22, 2021, when the NCLT accepted a resolution plan presented by the Jalan-Kalrock Consortium.
The first installment of the payment to lenders was due by JKC by May 15 in accordance with the NCLT’s January 13 ruling.
However, the consortium submitted a request to the tribunal asking that the 180-day window for paying the first payment not apply to the time between November 16 and April 13.
After the tribunal ruled in JKC’s favor, JKC was given 180 days to pay Rs 180 crore to the airline’s former creditors and Rs 250 crore to its former employees. Although May 15 is the deadline, the consortium has not yet made any payments.
The NCLT has ruled that the Consortium’s resolution plan will be implemented on November 16.
According to news sources, the Jet Airways lenders anticipate receiving Rs 270 crore from JKC in the first tranche, which will go towards paying off the debts of the lenders, employees, operational creditors, and CIRP expenses.
According to the Supreme Court’s directives, JKC also has the additional duty of contributing more than Rs 200 crore to the Provident Fund and gratuities for Jet personnel.
The resolution plan states that JKC suggested a liquidity infusion of Rs 1,375 crore, including Rs 475 crore for shareholder payments.
