News Post

Mint Explainer: SC hears Jet Airways ownership dispute. What’s at stake

Livemint · 28d

- The Supreme Court is currently hearing a case that will determine the future of Jet Airways, the first airline in India to face insolvency resolution. - The case revolves around the transfer of ownership of Jet Airways to the Jalan-Kalrock Consortium (JKC), which has been opposed by the airline's lenders. - If the Supreme Court nullifies the plan, Jet Airways could face liquidation, raising concerns about India's ability to handle airline insolvencies. - JKC is a partnership between Murari Lal Jalan and Florian Fritsch, aiming to revive Jet Airways and its operations. - The lenders argue that JKC has not fulfilled crucial conditions of the takeover, including payment of dues, providing security, clearing worker obligations, and obtaining operational approvals. - JKC maintains that it has met its financial commitments and is ready to revive the airline, but accuses the lenders of deliberately delaying the ownership transfer. - The outcome of the Supreme Court hearing could have significant implications for both Jet Airways and the insolvency regime in addressing airline bankruptcies.