GROUNDED FOREVER

The collapse of Jet Airways is a cautionary tale for all Indian carriers, highlighting the risks of debt, mismanagement, and competition in a volatile aviation market. Once a leader in Indian aviation, its liquidation marks the end of an era for Full Service Carriers, highlights ATUL CHANDRA

- ATUL CHANDRA

India's domestic aviation industry is one of the fastest growing in the world but has also turned into a graveyard for carriers unable to adapt to the rapid changes in a high-cost operating environment with rapidly shifting customer preferences. The latest airline to have the nail firmly shut in its coffin is Jet Airways, which for decades was India's largest and best run private airline. This November, the Supreme Court ordered the liquidation of the airline, bringing to an end an important chapter in the history of Full Service Carriers (FSC) in India. The revival of the airline had been in limbo for the last five years despite the approval of the resolution plan for the revival of the carrier by the National Company Law Appellate Tribunal (NCLAT). The Supreme Court decision also brings to an end the efforts of the consortium led by Murari Lal Jalan and Kalrock Capital, for the revival of Jet Airways. The consortium had initially estimated that if had received NCLT and regulatory approvals on time, Jet Airways would have been back in the skies by the summer of 2021. This was later revised to September 2022 with a total of six single-aisle aircraft and an all-female cabin crew. Whatever is now left of Jet Airways will be sold to resolve its outstanding debt to banks and other financial institutions.

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