Airlines

Banks must pay Jet Airways staff’s PF, gratuity: Jalan-Kalrock

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The successful bidder for Jet Airways, the Jalan-Kalrock consortium, has filed a petition with the National Company Law Appellate Tribunal (NCLAT), saying that the provident fund and gratuity obligations of Jet employees must be covered by the airline’s current financial stability, with the remaining balance coming from the lenders’ share.

Until the date of insolvency graduation in June 2019, the appeal tribunal had ordered the consortium to pay gratuities and provident funds to the airline’s employees on October 21. Around ₹275 crore is the total declared.

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The banks, who already receive an average 95% haircut as part of the decision process, have refused to split the cost of PF and gratuity dues, casting additional doubt on the two-year-old decision deal. The Jalan-Kalrock consortium (JKC) has stated that all claims must be resolved within that amount and that it is not obligated to pay creditors anything more than the total amount of Rs. 475 crores.

The airline’s cash balance, which is approximately 50 crore, will be used to cover all extra claims that haven’t been taken into account in the authorized resolution plan, with the remaining funds coming from the banks’ stake of the airline, said.

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JKC’s overall obligation to former Jet Airways creditors is set at 475 crores. The resolution plan, which has been accepted by Jet Airways lenders, NCLT, and NCLAT, already clearly lays out the source and method of payments, according to a consortium representative.

In 2020, Jalan-Kalrock was successful in its bid to revive the bankrupt airline through a bank-run insolvency process, but since then, little progress has been made due to disagreements over payment concerns that have arisen between the lenders and the consortium. Employee legal challenges have also slowed down the procedure.

The consortium offered a price of Rs. 1,375 crores for the carrier, of which Rs. 475 crores would be used to pay stakeholders and Rs. 900 crores would be allocated for working capital and capital expenditure. The consortium must fulfill the plan’s upfront payment requirement of 185 crores within 180 days; that period ends on November 29. Lenders are unlikely to transfer the airline to the consortium without getting their initial payment.

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Airlines

PIA Reinstates Manchester and Paris Routes After EU Ban Lift

Pakistan International Airlines (PIA) has announced plans to resume flights to Europe starting in January, beginning with Paris as its first destination.

The decision follows the European Union Aviation Safety Agency’s (EASA) removal of a long-standing ban on the airline. PIA’s inaugural flight to Paris is scheduled for January 10, with bookings opening on December 9.

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In an official statement, PIA spokesperson Abdullah Hafeez Khan confirmed that the first flight schedule has been approved, marking a significant milestone in the airline’s recovery efforts. The EU ban had previously cost PIA approximately Rs40 billion ($144 million) annually in lost revenue, compounding its financial struggles.

With European operations restarting, PIA is now setting its sights on the United Kingdom. The airline plans to seek approval from the UK Department for Transport (DfT) to resume flights to major British cities such as London, Manchester, and Birmingham.

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These routes are anticipated to see high demand once necessary clearances are obtained. The lifting of the EU ban represents a key achievement for PIA as it works to rebuild its international network and regain its standing in the global aviation market.

By restoring flights to Europe and aiming for UK destinations, PIA is taking critical steps toward recovering lost ground and improving its financial outlook.