Airlines

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

Banks slowing down Jet airways takeover. Why Indian banks unsupportive to Aviation Industry ?

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

Air India Rolls Out A350s for Delhi-New York JFK and Newark Routes

In a major development for North American travelers, Air India has announced the deployment of its state-of-the-art Airbus A350-900 aircraft on two key routes: Delhi to New York and Delhi to Newark.

The service on the Delhi-New York route will commence on November 1, 2024, while the Delhi-Newark route will see its inaugural flight on January 2, 2025.

The introduction of the air india a350 will bring significant enhancements to Air India’s offerings, particularly with the launch of its Premium Economy class. air india retrofit This new class will feature 24 wide seats arranged in a 2-4-2 configuration, providing passengers with extra legroom and a more comfortable flying experience.

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“We are encouraged by the positive guest feedback we have received from the domestic deployment of our air india a350 interior to offer our hero product on the Delhi-New York JFK and Delhi-Newark routes. This is a significant leap forward for our U.S. operations that also underscores our commitment to continuous improvement,” said Campbell Wilson, Chief Executive Officer & Managing Director of Air India.

The A350’s Business class will set new standards with 28 private suites, each equipped with full-flat beds, direct aisle access, and personal wardrobes. Economy class will be configured to accommodate 264 passengers in a 3-4-3 layout. Across all cabins, passengers will enjoy the latest Panasonic eX3 in-flight entertainment system, offering over 2,200 hours of content.

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This strategic deployment marks a notable enhancement in Air India’s U.S. operations, with 60% of its flights to the U.S. now featuring new or upgraded cabin interiors. The air india new international routes currently operates 51 weekly flights to five U.S. destinations: New York JFK, Newark, Washington DC, Chicago, and San Francisco.

The revamped cabins, advanced in-flight entertainment systems, and improved service standards represent air india wifi commitment to providing a superior travel experience. “We believe this enhanced offering will solidify Air India’s position as a leading carrier and attract travellers seeking a world-class flying experience between India and the United States,” the airline stated.

Seats on these flights are now available for booking on Air India’s website, mobile app, and through travel agents, ensuring that passengers can easily plan their journeys on these newly upgraded routes.