Aviation News

Ace Aviation approaches NCLAT to expedite sale of three Jet Airways aircraft, ET Infra


NEW DELHI: Ace Aviation approached the National Company Law Appellate Tribunal (NCLAT) again, seeking to expedite the sale of three aircraft previously owned by Jet Airways.

While the company had won a favourable order from the NCLAT in December last year, directing the monitoring committee of the beleaguered airline to close the sale of aircraft, it has not been able to take possession of its assets.

Ace Aviation said in its application that “the sale process of the aircraft need not await the decision in the appeals pending in this tribunal filed by lenders as well as in the Hon’ble Supreme Court”.

It further said that while it had transferred ₹54 crore earlier, it was willing to transfer the rest of ₹340 crore if the monitoring committee went ahead with the sale.

The company also argued that the aircraft involved complex technology, and if the aircraft are poorly maintained, they can quickly deteriorate to a point where it would be difficult to restore them.

“The fact that the aircraft are grounded since 2018, substantial investment and major restoration efforts will have to be put in by the applicants to make the aircraft airworthy,” Ace Aviation said, pointing out that it will take another eight to 10 months to restore the assets.

The company had won the bids for three Boeing 777-300 ER aircraft. However, the monitoring committee of the beleaguered airline had kept the bidding process in abeyance after it could not get all members to agree on the sale.

The committee comprises a resolution professional and three members each from the financial creditors and resolution applicant.

Ace Aviation had approached NCLT Mumbai in January 2023 to enforce the sale of the aircraft.

The company has been asked to serve a copy of the application to Jalan Kalrock Consortium (JKC), the successful resolution applicant of jet Airways.

The NCLAT has listed the matter for March 6. JKC has been embroiled in a legal tussle with the committee of creditors.

  • Published On Feb 29, 2024 at 12:55 PM IST

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