Don’t let a slot scarcity distort aviation rivalry
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Jet Airways, which went out of business in April 2019, could soon be ready to fly again under new ownership. On Tuesday, the National Company Law Tribunal (NCLT) approved a bankruptcy resolution plan submitted by a consortium of London-based financial advisory Kalrock Capital and Dubai-based businessman Murari Lal Jalan. Jet’s new owners are to get almost 90% of the airline’s equity, pay off some of its debt and obtain a fresh set of government clearances within 90 days to restart operations. These had lapsed after it shut down. The Kalrock-Jalan combine had hoped to reclaim its prized landing slots at Indian airports, but the NCLT rejected its argument that Jet’s “historicity" of runway usage entitled its aircraft to land and take off by their former schedule. In other words, it will now have to re-apply for specific time permits. Back in its heyday, Jet had over 700 slots, and its dominance of peak-traffic hours at Mumbai and Delhi gave it a competitive edge over its rivals. Slots are not just valuable, they are also perishable. So, under a loose use-or-lose policy, they were re-allotted to other air carriers. While Jet’s claim to their restoration is weak, it has revived a pre-covid debate over slot allocation.
