Jet Airways, which was supposed to have kick-started operations by now, has reported a net loss of INR 3080 million in Q3 of 2022, according to a regulatory filing. The airline reported a net loss of INR 3,000 million in 2021.
In the second quarter of the current fiscal year, Jet Airways saw its total income plunge to INR 135.2 million from INR 450.1 million a year ago. The airline's reported total expenses of INR 3217.6 million in Q3 of 2021.
The filing reads: “The company continues to incur losses resulting in an erosion in its net worth and its current liabilities exceed current assets as of September 30, 2022. The monitoring committee is not able to provide the consolidated financial results due to various reasons, including that subsidiaries are separate legal entities and are also currently non-operational. The team is facing huge difficulty in obtaining relevant data from the said subsidiaries as also there is no KMPs/senior management personnel (in the company's subsidiaries) from whom the relevant information can be obtained for the preparation of consolidated financial results of the company.”
Last year, the Jalan-Kalrock consortium emerged as the winning bidder for the airline after the National Company Law Tribunal (NCLT) approved the consortium's resolution plan. However, it has been three years since the airline grounded operations.
Meanwhile, the plans to monetise the airline assets have been postponed owing to a deadlock between the consortium and the lenders over the outline of its resolution plan. The assets to be monetised under the plan included 11 aircraft (five Boeing 777s, three Boeing 737s, and three Airbus A330s), and aircraft engine spares.
The adjournment of the plan follows the National Company Law Appellate Tribunal’s (NCLAT) ruling last month that the Jalan-Kalrock consortium pay the unpaid provident fund and gratuity dues of eligible employees, amounting to around INR2750 million
While banks want the consortium to pay the additional amount, the consortium has stated that it is not liable to do so. A further disagreement has also cropped up over the consortium not paying the first tranche of INR 1850 million to lenders. Moreover, it has also laid claim to the lease rentals accrued from Air Serbia to which Jet had leased three Boeing 777 aircraft. Meanwhile, lenders are not agreeing to give the carrier to the consortium before they receive the payment.
Going ahead, Kalrock Capital Partners clarified that the ongoing investigation by regulatory agencies in Europe against its promoter Florian Fritsch will have no impact on its acquisition of Jet Airways.
Fritsch is assisting in investigations by regulatory agencies in Liechtenstein, Switzerland, and Austria.
The probes are based on anonymous complaints filed in relation to certain businesses where Fritsch is a financial investor in his personal capacity, Kalrock said in a statement.
"Florian confirms that neither Kalrock Capital Partners nor Jet Airways have any connection with these ongoing investigations, or the charges made thereunder, and these investigations have no impact on the acquisition of Jet Airways, and Jalan-Kalrock Consortium remains committed towards Jet Airways," the company said.
Going ahead, Jet has already received its Air Operators Certificate from the Directorate General of Civil Aviation (DGCA) in May 2022, as the consortium is trying to revive the airline.