Friday, May 24, 2024

Jet Airways Granted Lifeline: Extended Deadline For Rescue Plan & AOC Amid Strict Re-certification Terms

By Aritra Banerjee

Amidst the ongoing saga of India’s beleaguered Jet Airways, the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT), courts overseeing the carrier’s insolvency, have allowed additional time for the implementation of the approved rescue plan. The extended deadline is now set for 3 September 2023, as the airline continues to undergo the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016.

Consequently, the Directorate General of Civil Aviation (DGCA), the Indian aviation regulatory body, has permitted an extension of Jet Airways’ Air Operator Certificate (AOC) up to the same date. However, this extension is strictly for the limited purpose of completing the ongoing CIRP.

This extension carries several caveats. First, Jet Airways must undertake a complete re-certification process as defined by the Civil Aviation Requirement (CAR) Section 3, Series C, Part 1, or CAP 3100, concerning issuing an AOC. This process requires the airline to comply with all applicable regulatory requirements before flight operations can recommence.

Secondly, the airline must pay the necessary fees associated with the re-certification.

Finally, as part of its roadmap for revival, Jet Airways must provide a solid action plan for re-launching operations. This plan is to be enacted once the company is officially acquired by the Successful Resolution Applicant (SRA), a transition that must align with the NCLT-approved rescue plan.

This development marks the latest step in a complex recovery journey for Jet Airways as it strives to navigate the financial turbulence and re-enter the skies.

Most Popular