Cannot have automatic slot restore to Jet Airways: center tells NCLT
The Department of Civil Aviation (MoCA) in its Supplementary Affidavit to the National Company of Law Tribunal (NCLT) reiterated its position on the slot issue asserting that the resolution’s claimant cannot claim the historicity of slots which were attributed to him earlier.
“…. there can be no automatic reactivation of approvals granted to Jet airways and reinstatement of slots, which were with Jet airways and it would be the same in accordance with the directives and regulations in force,” said the MoCA and the Directorate General of Civil Affairs. Aviation (DGCA) said in its affidavit.
When Jet Airways closed, the slots allocated to it were temporarily split between different airlines. And, the airlines that have been called upon to immediately create infrastructure so that the general public does not face hardship have invested huge sums of money in creating infrastructure to utilize these slots.
“In view of this, although the allocation of slots to these airlines is temporary, the same cannot be taken away from them without any legitimate basis,” the affidavit states.
“However, as Jet Airways requests slots, the slots would be distributed among all airlines without any claim of historicity in favor of an airline on those slots and this slot allocation would be in line with the guidelines. on slot allocation, 2013, ”stated the affidavit.
The case will be heard on Friday.
In their affidavit, the Kalrock – Jalan consortium, which won their case among the Jet Airways resolution candidates, said they felt the slots and traffic rights held by Jet would come back to them. The affidavit further stated that the resolution professional and the claimant had repeatedly communicated with the MoCA and DGCA to recover all of the slots and traffic rights held by Jet and despite the fact that there was a moratorium. , the authorities reallocated slots and traffic rights to other airlines.
Further, they alleged that the authorities had at no time informed the resolution professional that the historical rights would not be available to the debtor company or that the slots and traffic rights allocated on a ad hoc to other airlines would create historic rights in favor of these other airlines.
The MoCA and DGCA, on the other hand, have said that slot machines cannot be owned by a single entity. Slot allocation is carried out by the respective airport operators, depending on the availability of all elements – runway capacity, terminal capacity, capacity of parking stands and other related infrastructure in an airport, including services. of air navigation – and in accordance with the directives in force for allocation of slots. Consequently, the debtor company or the resolution requesting company cannot automatically claim the slots within the framework of this bankruptcy procedure.
Jet Airways closed in April 2019, following a cash shortage. The airline’s slots and traffic rights were then allocated to other airlines, allowing them to fill the capacity gap and launch new services.
Further in their affidavit, the MoCA and the DGCA stated that the resolution’s plaintiff cannot claim the history of the slots allocated to him for the winter 2018 and summer 2019 seasons because they do not have not used 80% of the slots allocated to them and have stopped their operation. even before the opening of the insolvency proceedings. Thus at the date of imposition of the moratorium, neither they had slots nor they had the right to claim historicity on the slots which were allocated to them in the winter 2018 and summer 2019 season.