Why the odds against the relaunch of Jet Airways are so tough

And, though since then there has been no abating media speculation about the resumption of Jet Airways operations, the prospects were bleak. As also written by former State Bank of India Chairman Rajnish Kumar in his recently released book Guardians of the Trust: Memoirs of a BankerThe airline’s end began when its promoter Naresh Goyal, along with an investment banker, approached the bank in 2018 to shore up its loans.

Jet Airways was referred to the NCLT Mumbai Bench. The resolution plan was approved in June 2021, when Colorrock and Jalan were mandated to restart the airline. But nothing moved on the ground in that time.

Jet Airways appears to be fit for obituary rather than flight schedule. Running an airline or reviving is necessary for, well, aircraft. Little is known about where and when Jet Airways is going to get its fleet of aircraft. The same goes for the aircraft parking slots at various airports. Perhaps the worst news for the airline is that its low-cost subsidiary JetLite has almost 11 months left for its operating license from the DGCA (Directorate General of Civil Aviation, the regulatory body) to expire. Jet’s operating license is also valid only till February 2023. Renewal of license is a time consuming and laborious process.

Running an airline also requires a lot of cash, and there are trained pilots, technicians, engineers and crew members. It is not clear how a non-operating company will retain such technically proficient employees on its role – that too at a time when Covid has severely affected air travel. Pilots will have to undergo training six to eight months before flight operations begin. Jet Airways has seen frequent exits from senior positions, although airline head-hunters have been active in the market in search of personnel for it. Earlier this month a communication from the Jalan-Kalrock consortium, which is trying to take the airline back to the skies, said “the company has yet to appoint its CEO.”

There are other obstacles to cross. Before commencing operations, Jet Airways, if enabled, will have to go through a five-stage process under CAP 3100 of DGCA. The process involves a pre-application stage in which Jet would be required to make a case to the DGCA to agree to allocate the resources that revalidation of the Air Operator Certificate would consume. The long and numerous safety and security approval obligations include those that will be required by its revised documents, to account for new management and personnel in key positions. Prior to certification, the airline’s aircraft, maintenance facilities and systems must undergo performance and inspection phases to show that the airline is in a position to conduct its proposed operations in accordance with the DGCA’s prescribed regulations. The airline’s training facilities, programs and training personnel will also be evaluated. It also takes a long time for Jet Airways to reach the starting point of these technical clearances.