Jet Airways gets final nod to execute resolution plan
June 24, 2021
Jet Airways has secured the final approval from India’s adjudicating body for its resolution plan, paving the way for the grounded airline to fly again after a more-than-two-year corporate insolvency resolution process. The National Company Law Tribunal (NCLT), which adjudicates issues relating to Indian firms, approved on 22 June the resolution plan by the consortium between UAE-based businessman Murari Lal Jalan and UK-based Kalrock Capital, the carrier says in a same-day filing to the Bombay Stock Exchange. In a separate statement, also dated 22 June, the airline's resolution firm Grant Thornton Bharat says the next step would be to work with the Jalan-Kalrock consortium to implement the plan in the coming weeks. It will also need to receive approvals from other authorities before operations can begin. Ashish Chhawchharia, partner at Grant Thornton Bharat, notes there are "a few concerns related to availability of routes/slots for the airlines to fly again", though "none of it is unsurmountable". "I am confident that the DGCA and Ministry of Civil Aviation will duly take into account all issues and give a fair consideration to the business proposal for Jet’s revival. Apart from airports, such as Delhi and Mumbai, on preliminary analysis, it appears that other airports have sufficient slots whereas some are likely to expand their capacity," he states.
Jet Airways, founded by Naresh Goyal, halted operations in April 2019 due to financial difficulties and was approved to enter a corporate insolvency resolution process in June 2019. In October 2020, the airline’s creditors accepted an offer from the Jalan-Kalrock consortium. Then, Chhawchharia told media that he expects the airline could be flying as soon as four to six months' time, subject to approval from the NCLT. For the financial year ended 31 March 2020, Jet Airways posted a net loss of Rs28.4 billion ($382 million), narrowing from a loss of Rs55.4 billion in the previous financial year.
UK travel industry seeks urgent summer restart
June 24, 2021
The UK airline and tourism sector is pressing the government to rapidly review its travel policy, as its seeks to rescue what it can of the peak summer flying season. It comes as part of a 'speak up for travel' day of action, with thousands of people expected to protest and take part in other events across the country in a bid to encourage the government to relax its current Covid-19 travel rules. The industry is asking the government to expand it's green list of safe travel countries, remove restrictions on vaccinated passengers, and provide greater financial support to the sector – including expanding its furlough scheme until April 2022.
Tim Alderslade, chief executive of Airlines UK says: "It is now or never for the government to reopen travel and save what is remaining of the summer season, not just for families desperate to get away but the tens of thousands of jobs which rely upon this once thriving sector." "Airlines are at the absolute limit of what they can borrow and without a genuine reopening this summer they will require government support to survive. The best way to save UK aviation is to enable a return to the skies – safely – by taking advantage of our vaccine dividend and allowing fully vaccinated passengers to travel without restrictions from amber and green countries. This is now happening across much of Europe and the UK is in grave danger of needlessly falling behind", he continues. The government has indicated in recent days that it is open to the idea of allowing double vaccinated travellers to enter the country without quarantine, with Heath Secretary Matt Hancock telling Sky News on 22 June that ministers were considering such plans. "This hasn't been clinically advised yet - we're working on it," he said. Asked when such a system might be put in place, he responded that: "We'll get there when it's safe to do so." Changes to the UK's green list system are also due to be announced as soon as 24 June, with The Times newspaper suggesting that Spain's Balearic islands may be added to the safe travel list, which would represent a significant step forward for the airline industry. It adds that "a handful" of further destinations are under consideration.
Vietnam further tightens rules on parked aircraft
June 23, 2021
Vietnam has further tightened requirements on aircraft parked for extended periods, as numbers continue to increase amid the Covid-19 pandemic. The Civil Aviation Authority of Vietnam (CAAV) issued a directive on 21 June requiring aircraft operators to submit a detailed report of each aircraft’s maintenance activities while in storage, before it is returned to service. For aircraft returning after downtime of a month or less, operators must submit this information within 48h before it takes flight, and within 72h for aircraft grounded over a month. In January, CAAV issued directives requiring that airlines rotate between in-service and stored aircraft every month, to address safety risks associated with extended storage. Airlines are also not allowed to leave aircraft in storage for longer than one month. Operators would need to seek prior approval from CAAV to ground aircraft for repair and maintenance beyond a month.