Sanjiv Kapoor Exits Jet, In New Setback For Its Revival Plans

The Jalan-Kalrock Consortium (JKC), which had hired Kapoor in April 2022, said Kapoor would leave the company at the end of his notice period on 1 May. The consortium’s executive committee will oversee the responsibilities of the CEO-designate until a suitable replacement is in place, it said in a statement.

Kapoor had previously worked at Vistara, Spicejet and Oberoi Hotels, among others, before joining Jet Airways in April 2022.

His exit further diminishes hopes that the airline that last flew in 2019 will take to the skies anytime soon.

“JKC will be announcing the new CEO for Jet Airways shortly. The revival of Jet Airways is through a court-approved process, which has taken more time than originally estimated by us, but needless to say, JKC is committed to the revival of Jet Airways. We are in the last leg of closing the transfer of ownership of Jet Airways to JKC, subsequent to which we will settle outstanding amounts payable to previous creditors as per our approved Resolution Plan and shall, soon thereafter, recommence the commercial operations of Jet Airways as per our relaunch plans," Ankit Jalan, board member, JKC said in the statement.

Kapoor did not respond to Mint’s calls and messages for comment.

The airline’s Air Operator’s Certificate, which was renewed by the Directorate General of Civil Aviation (DGCA) last year, which expires on 19 May. The airline has not applied for its renewal yet, indicating an unlikely resumption of service by the airline.

The regulator had also asked the private carrier about its plan to resume flights, as it remained grounded for months after securing the flying permit.

Under India’s civil aviation rules, a scheduled commercial airline operator is required to have a fleet of at least five planes, either leased or of its own. To facilitate the start of operations, an applicant is allowed to start flight services with just one aircraft and meet the requirement of five planes within a year of obtaining an air operator’s certificate (AOC).

After flying for over 25 years, full-service airline Jet Airways was grounded on 17 April 2019 amid a severe cash crunch. The airline’s insolvency process began in June 2019, and the National Company Law Tribunal (NCLT) approved a resolution plan submitted by the Jalan-Kalrock Consortium on 22 June 2021. However, banks and the Jalan-Kalrock consortium have been in a standoff over the airline’s ownership transfer since then.

NCLT on 13 January allowed the airline’s ownership transfer to the consortium, rejecting lenders’ request for a stay on the order.

The two sides also have differences over pending staff dues. In January, the consortium filed an appeal before the Supreme Court seeking a stay on the NCLAT’s 21 October order directing the consortium to clear unpaid provident fund and gratuity dues of ₹250 crore to former employees. The apex court dismissed its plea, upholding the NCLAT order.

The lenders had approached NCLAT against the NCLT order on transfer of ownership to Jalan-Kalrock Consortium, as they continue to be of the view that JKC has not met all conditions required for the transfer. NCLAT has rejected that plea. However, there are other legal battles with employees, their unions, whenever they submit claims on their dues.