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It seems to be ‘jet set go’ for Jet Airways once again, as the airline has formally announced the resumption of its domestic operations from the first quarter of 2022. The stock price shot up post the news and was seen getting locked at upper circuit for two consecutive days, yesterday and today.

“Jet Airways 2.0 aims at restarting domestic operations by Q1-2022 and short haul international operations by Q3-Q4 of 2022. Our plan is to have 50 plus aircraft in three years and over 100 aircraft in five years,” said Murari Lal Jalan, the consortium’s lead member.

The National Company Law Tribunal (NCLT) had on June 22 given approval to the Kalrock-Jalan plan to revive the airline, which had shut operations in April 2019. Kalrock Capital is a financial advisory and alternative asset management firm

Here’s a look at the journey of Jet Airways:

The Rise 

Jet Airways was founded on April 1, 1992, as a private company by Naresh Goyal, when the government opened skies for private air operators. In its first year itself, Jet Airways ferried 730,000 passengers. By 1999-2000, the airline was listed as the second highest passenger carrier after Indian Airlines and by 2003, Jet’s superior quality and performance takes it to the number one spot and it becomes Indian’s most preferred airline

In 2005, Jet crossed its revenue of $1 billion and was listed in the National Stock Exchange, it was the dominant player

In 2007, Jet acquired Air Sahara for Rs 1450 crore and became the largest airline operator in India with 30% market share in the domestic traffic. In 2009, Forbes named Naresh Goyal as India’s 75th richest man with a net worth of $700 million. The advent of low cost carriers, however, led Jet to launch competitive ticket prices and then with the rising fuel cost and hefty taxes, Jet suffered a huge loss. When the government eventually allowed foreign airlines to buy up to 49% of Indian local carriers, Jet sold 24% stake to Etihad in 2013.

The Fall 

By 2018, it became clear that Jet’s growth was dwindling with fierce competition from low-cost carriers, the airline lost much market share and revenues and fell into huge losses. It was forced to sell its widebody fleet, including its 777s and A330s, to reduce debt.

Once considered the second largest airline in the country, Jet Airways was grounded in April 2019 after facing a severe financial crunch. The struggling-airline was forced to halt flights due to acute fund shortage and mounting debt. Jet Airways had debt to the tune of Rs 8,000 crore on its books when it was grounded. An SBI-led consortium had back then referred the case to the NCLT for resolution.

The Return

The NCLT approved a resolution plan submitted by Kalrock-Jalan consortium for its revival in June 2021 raising hopes of the airline getting a second life.

The NCLT bench gave 90 days to implement the revival process. The consortium proposed a cash infusion of Rs 1,375 crore, including Rs 475 crore that will be used for payment to stakeholders, including financial creditors. Additionally, an amount of Rs 900 crore will be invested for capital expenditure and working capital requirements for the smooth functioning of the airline, as per the plan.

“It is the first time in the history of Aviation that an airline grounded for more than two years is being revived and we are looking forward to being a part of this historic journey,” Jalan said in the statement.

However, there are still impediments to the airline’s relaunch including the fact it does not have a fleet yet. The company has said that the airline will lease an all narrow-body aircraft fleet and aims to lease more than 50 aircraft in the next three years and over 100 in five years. The other obstacle facing Jet Airways is the allotment of flight slots. The airline is still negotiating slots and parking spaces with airport operators.

Jet Airways has already hired more than 150 full-time employees. However, the employees of the erstwhile airline have filed an appeal in the National Company Law Appellate Tribunal (NCLAT) against the Kalrock-Jalan rescue plan. Lender Punjab National Bank (PNB) has also approached the  tribunal seeking to quash the revival plan.

Will Jet 2.0 be successful?

Analysts say it is too early to comment on the possible success of Jet 2.0.

“The existing players are already struggling since the outbreak of Covid-19 in India. The sector still has a far way to go when it comes to reaching pre-Covid levels, as traffic is at an all-time low,” Mumbai-based independent aviation analyst, Ashish Nainan, told media.

Unfazed by these concerns however, the stock market has already expressed its confidence in the airline’s new business strategy. Jet’s stock has shot up to Rs 87, rising 10% in two days, and was seen hitting upper circuits.

“It is too soon to buy the stock keeping in mind that aviation is a difficult business globally and a lot needs to be seen on how can the new management navigate old problems and run the show,” AK Prabhakar of IDBI Capital told Money9.

Which airlines have gone belly up in India?

The Indian aviation space has gone through many turbulent times. The past decade has seen over 10 airlines shutting shop including regional airlines.

Kingfisher Airlines, which used to enjoy the second largest market share, ceased operations in 2012.

Bengaluru-headquartered regional airline Air Pegasus suspended its operations in July 2016 — just 15 months after it commenced operations in April 2015. Regional airline Air Mantra,  founded by  Religare Group and launched in 2012, was able to stay afloat for only eight months. It ceased operations in 2013.

Air Deccan/Simplifly Deccan was India’s earliest known low-cost carrier took to skies in 2003 and was founded by retired Indian Army captain GR Gopinath but, the mounting financial losses led the brand to be merged with Kingfisher in 2007.

Air Sahara was established in 1991 and began operations in 1993 as Sahara Airlines and was rebranded as Air Sahara in 2000. The airline operated primarily in northern India until it was acquired by Jet Airways in 2007.

MDLR Airlines, a Gurgaon-based aviation company suspended operations in 2009 in two years after its launch. Paramount Airways founded in 2005 shut operations after just five years of commencing them. Erstwhile aviation company East-West Airline was one of the first private companies to obtain an air operator permit from the aviation regulator operated between 1992 to 1996.

Damania Airways was founded by Parvez Damania in 1993 and ran the airline more like a five start hotel giving away many freebies and serving liquor on domestic flights. He ceased operations of Damania Airways in 1997 by selling the company to a Chennai-based wind mill manufacturer. ModiLuft Airlines was founded in 1994 as an AirTaxi provider which was later acquired by Ajay Singh in 2004 and re-christened as Spicejet.

Air Asia India now has stopped getting funds from its global owner and it is up to the Tata group now to sustain the airline.