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Thursday, June 13, 2024

After the DGCA approves the renewal of the air operator certificate, shares of Jet Airways close almost 5% higher

<p>Following the DGCA’s renewal of its air operator licence, Jet Airways’ shares concluded Monday’s trading session 4.91% higher at Rs 51.30 per share. This gained attention when the Jalan-Kalrock Consortium announced in an official announcement that the DGCA has extended Jet Airways’ Airport Operator Certificate (AOC) on July 28.<img decoding=”async” class=”alignnone wp-image-106355″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-after-the-dgca-approves-the-renewal-of-the-air-operator-certificate-shares-of-jet-airways-close-almost-5-higher-download-2023-08-01t173009.224.jpg” alt=”” width=”1487″ height=”1114″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-after-the-dgca-approves-the-renewal-of-the-air-operator-certificate-shares-of-jet-airways-close-almost-5-higher-download-2023-08-01t173009.224.jpg 259w, https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-after-the-dgca-approves-the-renewal-of-the-air-operator-certificate-shares-of-jet-airways-close-almost-5-higher-download-2023-08-01t173009.224-150×112.jpg 150w” sizes=”(max-width: 1487px) 100vw, 1487px” /></p>
<p>In trading on Monday, the share price of Jet Airways Ltd. substantially increased, extending gains for a seventh straight day. The company has lost over 28% of its value so far this year, while the returns on Jet Airways shares have dropped by 51% over the last 12 months.</p>
<p>The grounded airline controlled by the Jalan-Kalrock Consortium (JKC) is now able to resume operations in India thanks to the civil aviation authority renewing its air operator licence.</p>
<p>Due to financial difficulties, Jet Airways, which was in financial trouble, suspended flying on April 17, 2019.</p>
<p>Following an insolvency resolution procedure, JKC was chosen as the winning bidder for the grounded Jet Airways. According to a PTI report, there are still outstanding issues between JKC and the airline’s lenders, which has delayed the ownership transfer to JKC.</p>
<p>The airline is now being resurrected under the Insolvency and Bankruptcy Code (IBC) with the resolution plan authorized by the National Company Law Tribunal (NCLT).</p>
<p>The Jalan-Kalrock consortium commented on this development by saying, “JKC expresses its heartfelt gratitude to the aviation regulator, the Ministry of Civil Aviation, and all other stakeholders, for showcasing their faith in JKC and in the revival of Jet Airways.”</p>
<p>Jalan Kalrock Consortium allegedly informed the National Company Law Appellate Tribunal (NCLAT) on July 28 that the Committee of Creditors (CoC) is preventing them from beginning operations despite having the necessary government approvals.</p>
<p>Given that Jet Airways is still subject to the CIRP under the IBC, 2016, and that the NCLT and NCLAT have jurisdiction over the company’s bankruptcy, according to the DGCA, they have extended the deadline for the execution of the Resolution Plan to September 3, 2023.</p>

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