In an interim relief to Jet Airways, the National Company Law Tribunal (NCLT) has ordered Mumbai International Airport Ltd (MIAL) to not remove the airline’s assets from Mumbai airport premises, including its hangar. The tribunal has also directed the airport authorities not to deny Jet Airways’ representatives from accessing its assets at the airport.
In the order, the tribunal noted that although Jet Airways has stopped its operations, its former resolution professional under the Corporate Insolvency Resolution Process (CIRP) has kept a team to monitor and manage the airlines’ assets, including the aircraft and engines placed at the premises of MIAL. The resolution has approval from its committee of creditors.
NCLT Bench comprising Justice PN Deshmukh and technical member KK Vohra will further hear the matter on March 04, 2022.
MIAL directed Jet Airways to vacate Mumbai airport premises, including the hangar, and also denied permission to its staff and other representatives from accessing the same. The monitoring committee of Jet Airways sought NCLT’s intervention to remove MIAL’s mandate. MIAL is managed by Adani Airport Holding Ltd (AAHL), a subsidiary of Gautam Adani promoted Adani Enterprises.
The counsel that appeared for the monitoring committee of Jet Airways pointed out that such a restrain from the Mumbai airport authority will cause irreparable damage to the resolution plan of the airline. Besides, the resolution plan of Jet Airways has provisioned Rs 240 crore towards the airport, which it will receive as per the waterfall mechanism.
Countering the argument, counsel that appeared for Mumbai airport said that airlines such as IndiGo, Vistara and SpiceJet do not have hangars in Mumbai airport and are still operating without any issues. Moreover, the agreement signed between Jet Airways and MIAL regarding the hangar at Mumbai airport expired before commencing the resolution plan.
Jet Airways Posts Rs 104 Crore Loss
Meanwhile, Jet Airways has reported a net loss of Rs 104.19 crore in the quarter ended in December 2021, as per its regulatory filing. In Q3 2021-22, Jet Airways was focusing on reviving the operations of the grounded aircraft, as per the resolution plan announced by its new owners Murari Lal Jalan and Florian Fritsch consortium. NCLT approved the resolution plan in June 2021.