Jet Airways Grounded Forever! A saga of rise and fall of an iconic airline that shaped aviation in India
Jet Airways, the once most prestigious airline of India, has been hit hard by turbulence and will not fly again!
On Thursday afternoon, the November 7th, 2024, the honorable Supreme Court of India finally clipped the wings of Jet Airways by ordering its liquidation. Jet Airways’ assets will be liquidated, the Supreme Court said, invoking ‘extraordinary’ powers under Article 142 to set aside a tribunal’s decision to uphold a resolution plan and transfer ownership – to the Jalan-Kalrock Consortium – without full payment to creditors.
One of the most prestigious airlines of the country, Jet Airways, which had a golden history in the Indian aviation industry, has finally reached the last stage of its life. With the order of the Supreme Court, Jet Airways has been directed to be permanently shut down. This decision has not only dashed the hopes of revival of the airline but also brought an end to this iconic brand that flew for 25 years.
Rise and fall of Jet Airways
Founded in 1993 by Naresh Goyal, Jet Airways started its journey as an air taxi operator. At one point, the airline was one of the leading private airlines in the Indian aviation sector and served millions of passengers. At its peak, Jet Airways had a fleet of over 120 aircraft and a large team of over 20,000 employees.
Key Points:
Foundation and growth: Jet Airways was founded in 1993, initially offering air taxi services on the Mumbai-Ahmedabad route.
Peak time: With over 120 aircraft and over 20,000 employees, Jet Airways was a big name in the Indian aviation sector.
Financial crisis: In 2019, Jet Airways had to suspend its flights due to heavy debt and pending salary issues of employees.
April 2019: Last Flight of Jet Airways
On April 17, 2019, Jet Airways’ last flight S2-3502 from Amritsar to Mumbai took off at 10:30 pm and landed at Mumbai’s Chhatrapati Shivaji International Airport at 12:22 am the next day. After this, Jet Airways’ aircraft and other assets were gradually taken over by lenders and other airlines.
Jet Airways’ Permanent Closure: Legal Tussle
After Jet Airways was announced to be grounded, banks initiated insolvency proceedings against the airline at the National Company Law Tribunal (NCLT) on June 20, 2019. In 2021, Jalan Kalrock Consortium (JKC) won the bid for Jet Airways, but the revival plan kept getting delayed due to differences with banks.
Liquidation of Jet Airways
The Supreme Court terminated the ongoing insolvency proceedings for Jet Airways using Article 142.
The court quashed the NCLAT order that handed over control of Jet Airways to JKC without completing the payment process.
The amount of Rs 200 crore was allowed to be seized from JKC and the bank guarantee of Rs 150 crore was allowed to be encashed by SBI and other lenders.
Jet Airways Grounded Forever: What are the traces left?
Thousands of employees became unemployed since Jet Airways was grounded, and thousands of crores of rupees were lost to banks, vendors and passengers. In 2019, Jet Airways temporarily shut down its operations, saying that “no emergency funding has been received from banks or other sources,” due to which it is not possible to continue aviation operations.
Today, Jet Airways marks the end of a glorious chapter in the Indian aviation industry.
People Also Ask
What is the current situation of Jet Airways?
Presently Jet Airways is grounded and on Thursday, November 7th, 2024, the Supreme Court of India has ordered the liquidation of Jet Airways’ assets.
Will Jet Airways resume?
There were hopes of the revival of Jet Airways, but with the latest Supreme Court ruling, now Jet Airways will not resume operations.
Is Jet Airways reopening?
No, Jet Airways will be liquidated and not reopening.
Who is taking over Jet Airways?
No one! Now that the Supreme Court of India has ordered the liquidation of Jet Airways’ assets, the NCLT will liquidate its assets and try to pay off debts and outstanding to vendors and employees as per the company laws of India.
