IBC can’t resolve airline bankruptcies: Experts at Mint BFSI Summit
11 months, 1 week ago

IBC can’t resolve airline bankruptcies: Experts at Mint BFSI Summit

Live Mint  

The Insolvency and Bankruptcy Code can't resolve airline bankruptcies, according to RK Bansal, CEO and managing director of asset reconstruction company Edelweiss ARC. Speaking during a panel discussion titled ‘IBC and Banks: Challenges and Solutions’ at the Mint BFSI Summit and Awards 2024, Bansal highlighted a fundamental issue in the Indian aviation sector – most airlines don't own their planes and other assets. The insolvencies of Jet Airways and Go First underscore the enduring challenges in the Indian aviation industry – high costs, low profits, fierce competition, and a lack of scale. Go First filed for IBC protection in May 2023, blaming Pratt & Whitney engine failures for its financial woes, but has struggled to attract a viable resolution plan owing to legal challenges from lessors.

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History of this topic

Mint Explainer: The Cape Town connection to the Jet Airways, Go First insolvencies
1 month, 1 week ago

Mint Explainer: The Cape Town connection to the Jet Airways, Go First insolvencies

Live Mint  

The failure to revive two prominent Indian airlines—Jet Airways and Go First—has triggered a debate on the limitations of India’s Insolvency and Bankruptcy Code, particularly in addressing airline insolvencies. As it was with Jet Airways, Go First’s resolution process was marred by mismanagement, with lessors even filing contempt proceedings against the airline’s resolution professional, Shaildnea Ajmera, for allegedly damaging the …

Jet Airways liquidation: Why India needs a new regime to save airlines
1 month, 1 week ago

Jet Airways liquidation: Why India needs a new regime to save airlines

Live Mint  

Learning by doing is about the only way to master swimming, cycling or yoga, but does it apply to harnessing India’s Insolvency and Bankruptcy Code as well, particularly in the case of airlines? After Go Air, it is now Jet Airways’s turn to go into liquidation after an insolvency resolution process under IBC failed to sell the business as a …

Jet Airways' 1.43 lakh retail shareholders stare at wipeout after Supreme Court liquidation order
1 month, 2 weeks ago

Jet Airways' 1.43 lakh retail shareholders stare at wipeout after Supreme Court liquidation order

Hindustan Times  

The 1.43 lakh retail shareholders of Jet Airways are now staring at a complete wipeout of their investments after the Supreme Court ordered the troubled airline's liquidation on Thursday, November 8, rejecting the Jalan Kalrock consortium’s takeover bid. Naresh Goyal, chairman of Jet Airways According to exchange data, retail investors currently own 19.29% of Jet Airways Ltd shares. This amounts …

Grounded, by process
1 month, 2 weeks ago

Grounded, by process

Times of India  

Times of India’s Edit Page team comprises senior journalists with wide-ranging interests who debate and opine on the news and issues of the day. As Supreme Court calls it curtains on Jet Airways, it’s another tragic tale of another short-lived star business and the challenges of sustaining airline ops in a competitive, high-cost environment. But the real concern is a …

Mint Quick Edit | Jet Airways’ failed take-off: An IBC let-down
1 month, 2 weeks ago

Mint Quick Edit | Jet Airways’ failed take-off: An IBC let-down

Live Mint  

Revival hopes for Jet Airways received a mortal blow on Thursday as the Supreme Court ordered its liquidation. Since the non-operational airline’s acquisition bid-winner Jalan Kalrock Consortium had failed to infuse ₹350 crore as an initial tranche and meet other obligations under a resolution plan, the apex court said it was left with “no choice but to send Jet Airways …

Supreme Court orders liquidation of debt-ridden Jet Airways
1 month, 2 weeks ago

Supreme Court orders liquidation of debt-ridden Jet Airways

Hindustan Times  

The Supreme Court on Thursday ordered the liquidation of Jet Airways while setting aside the National Company Law Appellate Tribunal ruling that upheld the transfer of the defunct airline’s ownership to the Jalan-Kalrock Consortium under an approved resolution plan. Represented by advocates Debmalya Banerjee, Kartik Bhatnagar and Karanjawala & Co, JKC said it incurred significant losses, exceeding ₹600 crore, due …

Jet Airways liquidation: A wake-up call for India’s insolvency code
1 month, 2 weeks ago

Jet Airways liquidation: A wake-up call for India’s insolvency code

Live Mint  

New Delhi: The Supreme Court’s decision ordering the liquidation of Jet Airways, once India’s leading airline, has provided sufficient fodder for bankruptcy experts urging for an overhaul of India’s insolvency framework. JKC’s repeated non-compliance with the terms of the resolution plan caused the value of the plan to diminish significantly," said Devesh Dubey, senior associate at Sanjay RPK Law, a …

Jet Airways grounded for good as Supreme Court orders liquidation
1 month, 2 weeks ago

Jet Airways grounded for good as Supreme Court orders liquidation

India Today  

The Supreme Court's ruling on November 7 to liquidate Jet Airways effectively closed the chapter on attempts to revive the once-prominent Indian airline. With Jet Airways grounded since 2019 due to financial distress, the court's decision highlights the challenges surrounding corporate recoveries within India’s aviation sector. The court also set aside the National Company Law Appellate Tribunal order, which allowed …

Airfares may go up as Go First goes off air, files for insolvency
1 year, 7 months ago

Airfares may go up as Go First goes off air, files for insolvency

Deccan Chronicle  

NEW DELHI: No-frills carrier Go First filing for insolvency proceedings and cancelling flights is bad for the airline industry as the move will reduce capacity and could push airfares in certain routes, travel agents' grouping TAAI said on Wednesday. Bogged down by an acute financial crunch due to grounding of more than half of its fleet amid P&W engine supply …

Jet Airways takes to the skies after three years: What’s in store for the once-bankrupt airline?
2 years, 7 months ago

Jet Airways takes to the skies after three years: What’s in store for the once-bankrupt airline?

Firstpost  

Jet Airways has already hired over 200 people across major operations, including former SpiceJet and Vistara executive Sanjiv Kapoor as its CEO. The airline plans to start operations in the September quarter of this year A Jet Airways test flight took to the skies on Thursday from Hyderabad Airport for the first time after a hiatus of three years. The …

Explained | What are the challenges Jet Airways faces before it can take off again?
3 years, 5 months ago

Explained | What are the challenges Jet Airways faces before it can take off again?

The Hindu  

The story so far: Two years after Jet Airways — at the time India’s second-largest full-service airline — halted operations in 2019 as it ran out of cash, the carrier has a real chance at getting airborne again. When Jet Airways halted operations in 2019, the government distributed its airport slots among various other Indian carriers. At the time, the …

Jalan Kalrock Consortium expects to restart Jet Airways in 4-6 months after NCLT nod
3 years, 10 months ago

Jalan Kalrock Consortium expects to restart Jet Airways in 4-6 months after NCLT nod

Live Mint  

Jalan Kalrock Consortium, the winning bidder for Jet Airways, expects to restart operations of the defunct airline in four to six months after receiving approval from the NCLT for its resolution plan. Against the backdrop of the National Company Law Tribunal likely to take a final call on the resolution plan for the airline, the winning consortium's lead member Murari …

Jet Airways Operations Remain Tough, Uncertain Despite CoC Approval Of Revival Plan: Expert
4 years, 2 months ago

Jet Airways Operations Remain Tough, Uncertain Despite CoC Approval Of Revival Plan: Expert

ABP News  

It seems that troubles for the ailing Jet Airways isn’t getting over soon even as the committee of creditors has approved the airline's revival plan submitted by the Kalrock Capital-Murari Lal Jalan consortium. According to news agency PTI report, Kaul has said the "terms" accepted by the Jet Airways creditors did not make sense to CAPA.The committee of creditors has …

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