Jet Airways CEO-Designate Sanjeev Kapoor Resigns

Business News Highlights: Latest Updated on April 30, 2023 by ThinkWithNiche
- Sanjeev Kapoor steps down as CEO of Jet Airways, with his notice period ending on April 30, 2023.
- Resignation adds to challenges in airline's revival, as the dispute between lenders and the Jalan-Kalrock consortium remains unresolved.
- Kapoor's departure follows a series of resignations from senior employees, including the company secretary and chief security officer.
- Despite setbacks, Jalan-Kalrock Consortium reaffirms commitment to Jet Airways revival and plans to announce a new CEO soon.

Jet Airways CEO-designate Sanjeev Kapoor has resigned from his position, adding to the airline's challenges in its ongoing revival efforts amid the unresolved impasse between lenders and the Jalan-Kalrock Consortium.
Kapoor's resignation comes as the clock ticks for the airline to make payments and resume operations. His notice period ends on April 30, 2023.

Since 2019, Jet Airways has been grounded, and an insolvency process led by the State Bank of India has failed to find a solution thus far.
Kapoor's departure follows a series of resignations by senior employees, including the company secretary and chief security officer, further impacting the struggling airline.

The Jalan-Kalrock Consortium, however, reaffirms its commitment to the revival of Jet Airways and plans to announce a new CEO soon.
Ankit Jalan, a board member of JKC, stated that the consortium is in the final stages of ending the transfer of ownership of Jet Airways to JKC.
Following this, they will settle outstanding amounts payable to creditors in accordance with their approved resolution plan and resume the commercial operations of Jet Airways as per their re-launch plans.

The National Company Law Tribunal (NCLT) provided the Jalan-Kalrock Consortium with 180 days to pay Rs 180 crore to the former creditors of the airline and Rs 250 crore to former employees.
Despite the deadline of May 14 fast approaching, the consortium has not yet made any payments.

Sources familiar with the situation suggest that lenders are considering asking the Supreme Court to declare the settlement process illegal, as JKC has not yet made the required payments.
They also noted that liquidation is the company's most likely future outcome at this point.

In addition to the existing challenges, the airline's Air Operators Permit (AOP) is due to expire on May 19. The AOP, required by the aviation regulator DGCA, is necessary to demonstrate that an airline has the required fleet and personnel to conduct scheduled operations.
However, sources reveal that the aircraft Jet Airways previously used to complete the AOP process is no longer operational due to non-payment, with lessors taking control of the engines.

Despite these setbacks, the Jalan-Kalrock Consortium is determined to revive Jet Airways, and the executive committee of JKC will oversee CEO-designate responsibilities until a suitable replacement is found.
In the meantime, the airline faces an uphill battle to resolve the ongoing dispute between lenders and the Jalan-Kalrock Consortium, make the required payments to creditors and employees, and find a new CEO to lead the company through its revival process.

This Business News was First Reported on April 29, 2023, The Coverage is Mentioned Below:

Sanjiv Kapoor CEO of Jet Airways has left the company, posing a further setback in the airline's efforts to revive. While the clock is ticking on the business to make payments and resume operations Kapoor's resignation comes as the impasse between lenders and the Jalan-Kalrock consortium remains unresolved.

Kapoor's notice period, according to sources expires on April 30.

Since 2019, the airline has been grounded, and an insolvency process run by the State Bank of India has so far failed to find a solution.

It was confirmed by the consortium, which stated that its executive committee would supervise CEO's operations.

It goes without saying that JKC is committed to the resurrection of Jet Airways. The revival of Jet Airways is through a Court Approved Process, which has taken longer than we had originally anticipated. Ankit Jalan board member of JKC stated that "we are in the final stages of ending the transfer of ownership of Jet Airways to JKC. Following this, we will settle outstanding amounts payable to before creditors in accordance with our approved Resolution Plan and shall, shortly thereafter, resume the commercial operations of Jet Airways as per our re-launch plans.

JKC received 180 days to pay Rs 180 crore to the former creditors of the airline and Rs 250 crore to former workers after the National Company Law Tribunal (NCLT) decided in its favor. The consortium has not yet paid any payments, even though May 14 is the date.

"This was a requirement for the transfer of ownership from banks to the new owners. However, they have not yet paid. According to a source familiar with the situation, lenders are considering asking the Supreme Court to declare the settlement process illegal. They also noted that liquidation is the company's most likely future outcome at this point.

In addition, the airline has an aircraft, various position holders, including a CEO, and its Air Operators Permit (AOP), which is due to expire on May 19, as required by aviation regulator DGCA. This is done to show that an airline has the necessary fleet and personnel to conduct scheduled operations.

According to sources, the aircraft VT-SXE that Jet Airways previously used to finish the AOP process is no longer operational, and lessors have taken control of engines as a result of non-payment.

According to the NCLT's judgment dated January 13, JKC had satisfied every prerequisite outlined in the resolution plan, which cleared the way for the lenders to transfer ownership of the airline to the successful bidder.

Senior employees from the grounded airline, including the company secretary, responsible manager, and chief security officer, have resigned in the last week. A few months ago, the director of training, the director of flight operations, and the head of flight safety all left Jet.

In October 2020, the Kalrock Capital-Murari Lal Jalan team won the bid for Jet Airways. Entrepreneur Jalan, who lives in the UAE, owns the business MJ Developers and has holdings in the countries of the UAE, India, Russia, and Uzbekistan.

German Businessman, Investor, and former racing driver Florian Fritsch. He is the founder and chairman of the Zug-based investment company Kalrock as well as the Vaduz-based FRITSCH Group.