Jet Airways has already hired over 200 people across major operations, including former SpiceJet and Vistara executive Sanjiv Kapoor as its CEO. The airline plans to start operations in the September quarter of this year
Jet Airways was ground in 2019 due to fund crunch and massive debt. AFP
A Jet Airways test flight took to the skies on Thursday from Hyderabad Airport for the first time after a hiatus of three years. The airliner was grounded in 2019 due to its poor financial situation.
The 90-minutes long test flight was conducted ahead of the airline’s “proving flights” that are expected to be scheduled over the next few days by the Directorate General of Civil Aviation (DGCA).
Rise and fall of Jet Airways
Founded by NRI businessman Naresh Goyal, Jet Airways operated its first commercial flight on 5 May, 1993. The flight flew last on 18 April, 2019 as it collapsed due to fund crunch and high debt.
In 2016, it was one of the largest airlines in India with over 21 per cent passenger market share. However, in over a year it dropped to second place behind IndiGo with a market share of 17.8 per cent.
Due to fierce competition between airlines, it was forced to lower ticket fares, which hurt overall performance resulting in steep financial losses. As the company’s downward slide continued, it began bankruptcy proceedings in 2019.
According to a report by the Indian Express, the airline was acquired by a consortium of UAE-based businessman Murari Jalan and UK-based Kalrock Capital.
The consortium has committed to a funding of $180 million, of which $60 million will be used to repay the airline’s existing dues.
What is a proving flight?
The DGCA makes proving flights mandatory before granting an Air Operator Certification (AOC). In Jet Airways’ case, it would mean the revalidation of its AOC.
Proving flights are operated with the complete crew, which includes the pilots, cabin crew, along with DGCA officials and any airline personnel required to support the flight.
The operational knowledge of the group operations, cockpit and cabin crew is tested during a proving flight.
What is next for Jet Airways?
According to The Hindu, after the AOC is granted, the National Company Law Tribunal will proceed to transfer the ownership of assets such as Jet Airways’ 11 aircraft to the Jalan-Kalrock consortium.
It will essentially allow the airline to start functioning commercially as it can place an order for planes and start talks with airports for slots.
The airline aims to resume operations by the third quarter of calendar year 2022, The Hindu reported.
As per the Indian Express, the airline has already hired over 200 people across most major functions, including appointing former SpiceJet and Vistara executive Sanjiv Kapoor as CEO.
With inputs from agencies
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