Jet Airways India, which is undergoing a court-monitored restructuring, plans to return with a hybrid of premium and no-frills services that would allow the former top local airline to claw back market share while managing costs in the fiercely competitive Indian aviation market.
The bankrupt airline, now helmed by a new set of owners, will have a two-class configuration where business class passengers will be offered services including free meals, its new chief executive Sanjiv Kapoor said in an interview near New Delhi.
The economy class will, however, be modelled similar to low-cost carriers where flyers pay for meals and other services, he said.
“It’s very difficult in the domestic Indian market to take on the cost of the food and everything else in economy class, where the customer in India chooses primarily on the basis of fares,” said Mr Kapoor, an aviation veteran who took charge of the defunct airline this week.
“Let’s just accept that and let’s not burden ourselves with extra cost.”
It’s very difficult in the domestic Indian market to take on the cost of the food and everything else in economy class, where the customer in India chooses primarily on the basis of fares
Sanjiv Kapoor,
chief executive of Jet Airways
A successful revival of Jet Airways, which collapsed under a pile of debt in 2019 and became the first airline to enter a reformed insolvency resolution process, will be a major moment for India’s bankruptcy laws. The new owners — Dubai-based, Indian-origin businessman Murari Lal Jalan and Florian Fritsch, the chairman of London-based financial advisory and alternative asset manager Kalrock Capital Management — have pledged to make investments of as much as $120 million, Mr Kapoor said.
Mr Kapoor himself is not new to navigating carriers through turbulent skies. He spearheaded SpiceJet as its chief operating officer in 2014, helming it through a time when the low-cost airline was severely cash strapped. He was also the chief strategy and commercial officer for Tata Group-led airline, Vistara.
Jet Airways will operate a so-called proving-flight — one or more test flights with no passengers to assess safety — as early as this month, using a leased Boeing 737, Mr Kapoor said and added that this will immediately make the airline eligible for a flying permit. This permit allows the new owners to bring in investments and enables the airline to negotiate landing and parking slots with airports.
“We are confident that we are very close to a proving flight,” Mr Kapoor said.
“Proving flight is the last step. If you pass the last step there’s nothing preventing you from getting the AOP,” he said, referring to an air operator permit, which is a licence to start commercial operations.
Jet Airways will return to Indian skies that are expected to get more crowded and competitive as billionaire Rakesh Jhunjhunwala-owned Akasa Air gears up to fly later this year. The unprofitable and former flag airline Air India was recently acquired by the Tata Group, which is looking to turn it around. Even though air travel is rebounding strongly from two years of the Covid-19 pandemic, India is a tough place to make money in aviation and several carriers have failed amid bruising fare wars and high costs.
Jet Airways will prefer hiring employees who were with the airline before it collapsed and try getting as many of them back as possible, Mr Kapoor said and added that the airline will also restore the status of platinum members. The management is still assessing whether it should revive the old frequent-flyer loyalty plan, which was jointly owned by Etihad Airways, or launch a new one over which it has full control.
Founded by ticketing agent-turned-entrepreneur Naresh Goyal after India ended a state monopoly on aviation in the early 1990s, Jet Airways became popular among flyers as an attractive alternative to formerly state-run Air India, offering full-service flights to cities including London and Singapore, before a bunch of low-cost airlines ushered in cheap fares for no-frills services.
The consortium between Mr Jalan and Mr Kalrock is currently in court seeking another extension of 90 days to enact the rescue plan it proposed for the bankrupt airline. The successful bidder had proposed to make payments worth 13.75 billion rupees ($180m), out of which 3.5bn rupees would be paid in the first 180 days, failing which the plan could be scrapped, according to court documents.
The consortium infused 500m rupees into Jet Airways 2.0 — as it has been called by the new owners — in January, and lenders have said they do not object to an extension of 60 days. A court decision on the deadline extension request is awaited.
The delay in enacting the resolution plan is in part hampered by the lack of a flying permit, Mr Kapoor said. While the plan initially envisaged renewing the old permit of Jet Airways, that licence is no longer valid, which forced the airline to apply afresh, he said.
Jet Airways is also evaluating aircraft from Boeing, Airbus and Embraer, and has yet to decide on a model, Mr Kapoor said. Due to a heavy backlog with manufacturers of the most-popular planes, Jet Airways will initially start with leased aircraft.
The insolvent airline, in which creditors were forced to take a 95 per cent haircut, was in talks with Airbus and Boeing to induct at least 100 narrowbody jets, Ankit Jalan, a representative for the consortium, told Bloomberg News in December.
The airline doesn’t want to be pushed into an aircraft only because it is available now, Mr Kapoor said.
“We’d rather take a longer-term view and do the analysis, and evaluate the entire syllabus and pick what we think is best,” he said. “We don’t want the tail to wag the dog.”
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Jeff Buckley: From Hallelujah To The Last Goodbye
By Dave Lory with Jim Irvin
Profile of Hala Insurance
Date Started: September 2018
Founders: Walid and Karim Dib
Based: Abu Dhabi
Employees: Nine
Amount raised: $1.2 million
Funders: Oman Technology Fund, AB Accelerator, 500 Startups, private backers
Scoreline
Liverpool 3
Mane (7'), Salah (69'), Firmino (90')
Bournemouth 0
A%20QUIET%20PLACE
%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Lupita%20Nyong'o%2C%20Joseph%20Quinn%2C%20Djimon%20Hounsou%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EMichael%20Sarnoski%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
BLACKBERRY
%3Cp%3EDirector%3A%20Matt%20Johnson%3C%2Fp%3E%0A%3Cp%3EStars%3A%20Jay%20Baruchel%2C%20Glenn%20Howerton%2C%20Matt%20Johnson%3C%2Fp%3E%0A%3Cp%3ERating%3A%204%2F5%3C%2Fp%3E%0A
Defence review at a glance
• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”
• Prioritise a shift towards working with AI and autonomous systems
• Invest in the resilience of military space systems.
• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
Also on December 7 to 9, the third edition of the Gulf Car Festival (www.gulfcarfestival.com) will take over Dubai Festival City Mall, a new venue for the event. Last year's festival brought together about 900 cars worth more than Dh300 million from across the Emirates and wider Gulf region – and that first figure is set to swell by several hundred this time around, with between 1,000 and 1,200 cars expected. The first day is themed around American muscle; the second centres on supercars, exotics, European cars and classics; and the final day will major in JDM (Japanese domestic market) cars, tuned vehicles and trucks. Individuals and car clubs can register their vehicles, although the festival isn’t all static displays, with stunt drifting, a rev battle, car pulls and a burnout competition.
More from Neighbourhood Watch
UAE currency: the story behind the money in your pockets
Ahmed Raza
UAE cricket captain
Age: 31
Born: Sharjah
Role: Left-arm spinner
One-day internationals: 31 matches, 35 wickets, average 31.4, economy rate 3.95
T20 internationals: 41 matches, 29 wickets, average 30.3, economy rate 6.28
If you go
The flights
The closest international airport for those travelling from the UAE is Denver, Colorado. British Airways (www.ba.com) flies from the UAE via London from Dh3,700 return, including taxes. From there, transfers can be arranged to the ranch or it’s a seven-hour drive. Alternatively, take an internal flight to the counties of Cody, Casper, or Billings
The stay
Red Reflet offers a series of packages, with prices varying depending on season. All meals and activities are included, with prices starting from US$2,218 (Dh7,150) per person for a minimum stay of three nights, including taxes. For more information, visit red-reflet-ranch.net.
The Bio
Favourite place in UAE: Al Rams pearling village
What one book should everyone read: Any book written before electricity was invented. When a writer willingly worked under candlelight, you know he/she had a real passion for their craft
Your favourite type of pearl: All of them. No pearl looks the same and each carries its own unique characteristics, like humans
Best time to swim in the sea: When there is enough light to see beneath the surface
Have you been targeted?
Tuan Phan of SimplyFI.org lists five signs you have been mis-sold to:
1. Your pension fund has been placed inside an offshore insurance wrapper with a hefty upfront commission.
2. The money has been transferred into a structured note. These products have high upfront, recurring commission and should never be in a pension account.
3. You have also been sold investment funds with an upfront initial charge of around 5 per cent. ETFs, for example, have no upfront charges.
4. The adviser charges a 1 per cent charge for managing your assets. They are being paid for doing nothing. They have already claimed massive amounts in hidden upfront commission.
5. Total annual management cost for your pension account is 2 per cent or more, including platform, underlying fund and advice charges.
The specs
Engine: 3.9-litre twin-turbo V8
Power: 620hp from 5,750-7,500rpm
Torque: 760Nm from 3,000-5,750rpm
Transmission: Eight-speed dual-clutch auto
On sale: Now
Price: From Dh1.05 million ($286,000)
House-hunting
Top 10 locations for inquiries from US house hunters, according to Rightmove
- Edinburgh, Scotland
- Westminster, London
- Camden, London
- Glasgow, Scotland
- Islington, London
- Kensington and Chelsea, London
- Highlands, Scotland
- Argyll and Bute, Scotland
- Fife, Scotland
- Tower Hamlets, London
The specs
Price: From Dh529,000
Engine: 5-litre V8
Transmission: Eight-speed auto
Power: 520hp
Torque: 625Nm
Fuel economy, combined: 12.8L/100km
'Operation Mincemeat'
Director: John Madden
Cast: Colin Firth, Matthew Macfayden, Kelly Macdonald and Penelope Wilton
Rating: 4/5
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
