Jet Airways

The rise and fall of Jet Airways: From India’s premier airline to liquidation

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Jet Airways, once India’s leading and most admired private airline, has officially reached the end of its journey with the Supreme Court’s decision to liquidate it under the Insolvency and Bankruptcy Code (IBC). The airline, which ceased operations in April 2019, was embroiled in a prolonged legal struggle after efforts to revive it through the corporate insolvency process failed. The primary battle involved the State Bank of India-led consortium of lenders and the Jalan KalRock Consortium (JKC), which had won the bid to take over the airline in 2021 but failed to meet financial obligations.

Founded by Naresh Goyal in 1993, Jet Airways capitalised on the economic liberalisation of the early 1990s to challenge state-owned Indian Airlines and Air India. It rapidly grew in stature, offering premium service and an expansive network, eventually going public in 2005. However, strategic missteps—including the high-cost acquisition of Air Sahara and rapid international expansion—compounded by fare wars and rising fuel costs eroded its financial stability. The competitive pressure from low-cost carriers like IndiGo, along with the 2008 global financial crisis and subsequent economic challenges, further strained Jet Airways.

In 2013, a partial acquisition by Etihad Airways provided temporary relief, but by 2018, financial troubles resurfaced. Allegations of fund misappropriation by Goyal emerged, exacerbating the airline’s woes. After failing to secure emergency funds in 2019, Jet Airways suspended operations. Subsequent attempts to transfer ownership to JKC were unsuccessful, leading to Thursday’s Supreme Court ruling for liquidation.

Jet Airways, at its height, served over 65 domestic and international destinations and operated a fleet of 124 aircraft. Between 2007 and 2016, the airline operated a scissor hub at Brussels Airport, ideally located between India (Mumbai, Delhi, Chennai) and North America (New York JFK, Newark, Toronto). This hub was moved to Amsterdam after the Brussels Airport terror attacks.

The saga of its collapse includes allegations of financial misconduct and ongoing investigations into fund diversion. The liquidation order marks the definitive end to a story marked by rapid growth, fierce competition, and ultimate decline.

This post was published on 7 November 2024 23:19

André Orban

M. Sc. Engineering

Published by
André Orban

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