Jet Airways has hit a new speed bump on its way to revival. The airline's resolution plan has been challenged by two employee unions, who are demanding higher compensation from the new ownership. The challenge could result in another delay to Jet's revival, which has already been slowed for months due to issues over slots.

Delayed

According to The Federal, Jet Airways is facing another challenge to its revival this month. Despite having its resolution plan accepted by the bankruptcy court last year, the airline has not been given the all-clear to begin flying again. Now, it faces a legal petition that could result in months of battle before taking off.

Two employee unions, Bhartiya Kamgar Sena and the Jet Airways Cabin Crew Association, have both asked the bankruptcy court (NCLT) to force the airline's new owners to increase their compensation to former employees.

Jet Airways Pilots
When the carrier went bankrupt, several employees were left without a job. Jet Airways is now looking to increase its workforce to more than 1000 gradually. Photo: Getty Images

Jet's new leadership previously offered ₹52 crores ($7 million), only 4.1% of the actual dues, and a stake in the carrier to former employees. However, this plan was swiftly rejected by employees by a huge margin, leaving them with no other funds. Now, the two unions are pushing for more dues and fresh jobs at the revive airline.

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Still fly

It's important to note the petition by the two unions does not demand a stay on the revival process. Instead, it hopes to see the airline flying again, and Kalrock-Jalan pays more to employees along with jobs, as once hoped. However, there is a chance that the matter could escalate to higher courts, slowing the revival process.

Before the employee dispute, Jet Airways spent nine months trying to get the government to confirm whether it will receive its historical slots. The DGCA eventually said it wouldn't, but the judge ruled that Jet must get at least some of the original slots.

Jet Airways Boeing 737s
The carrier is working towards getting its AOC revalidated. Photo: Getty Images

For now, Jet's new owners will be hoping the legal challenge does not turn into a stay, pausing all revival operations. A round of negotiations with employees could be feasible, resulting in a better deal and buying some goodwill. As it stands now, employees are not entitled to anything after rejecting the last deal.

Competition

While Jet struggles to get off the ground 12 months after its plan won NCLT approval, more competition is creeping up. Last month, the world was introduced to Akasa Air, an ultra-low-cost airline that will also fly the 737 MAX and kick off operations early next year. This comes on top of the already crowded market that once bankrupted Jet.

To have any shot at success, the airline must come back soon and make a splash on mainline and regional routes. We still do not know which aircraft the airline plans to operate now. However, as time passes, there is a risk that the airline is stuck in bureaucratic hurdles for months more, pushing back its start.  

What do you think about Jet Airways' revival? Let us know in the comments!