The saga of Jet Airways, once India’s flagship airline, has unfolded as a dramatic and complex ownership battle that stretched over five years, marked by legal challenges, financial struggles, and the gradual unraveling of a once-thriving aviation giant. Founded in 1992 by Naresh Goyal, Jet Airways soared to prominence in the 2000s, becoming one of India’s most respected carriers, known for its service quality and wide-ranging international network. However, by the late 2010s, financial mismanagement, increasing competition from low-cost carriers, and rising operational costs put immense strain on the airline, leading to an unsustainable debt burden of around ₹8,000 crore ($1.1 billion) by 2018.
In 2018, as Jet Airways teetered on the brink of collapse, it suspended international flights, and by early 2019, it was clear the airline was heading for bankruptcy. In an attempt to salvage the airline, the board and creditors, led by the State Bank of India (SBI), sought new investors to revive the ailing carrier. In March 2019, amid mounting pressure, Naresh Goyal, the airline’s founder and largest shareholder, was forced to step down, ceding control of Jet Airways to its creditors, though he retained a minority stake. The battle for control of the airline was now in the hands of the banks and potential investors.
The ownership dispute quickly escalated as multiple parties sought to take over the airline, including the SBI-led lenders’ consortium and foreign investors like Etihad Airways, which had a stake in Jet Airways since 2013. The airline’s mounting debt and ongoing losses made it an unattractive investment, but several firms, including Edelweiss ARC and other financial players, stepped forward with restructuring proposals. However, none of these proposals led to an immediate resolution. The bankruptcy process was long and protracted, with delays caused by disputes over Goyal’s remaining stake, questions about Etihad’s involvement, and difficulties in finding an investor willing to take on Jet’s substantial debt.
By mid-2019, Jet Airways was officially placed under the Corporate Insolvency Resolution Process (CIRP), with the National Company Law Tribunal (NCLT) overseeing the proceedings. Over the next year, various potential investors came forward, but all bids were either rejected or failed to meet the creditors’ expectations. The ownership issue remained unresolved as the airline’s future hung in the balance. In early 2021, a new hope emerged with the proposal from the Jalan-Kalrock consortium, led by Indian businessman Murari Lal Jalan and the UK-based Kalrock Capital. The consortium offered a plan to revive the airline with an infusion of ₹1,375 crore ($186 million) and a commitment to resume operations within six months.
In June 2021, the NCLT approved the bid from the Jalan-Kalrock consortium, paving the way for Jet Airways to potentially take to the skies once more. However, the path to revival has been anything but smooth. The legal battles continued, with Etihad challenging the consortium’s bid, claiming that its interests were not adequately represented in the restructuring process. Furthermore, the new owners have faced their own financial hurdles, further delaying the airline’s revival. The ownership dispute, combined with a series of legal challenges, has left Jet Airways grounded and its future uncertain.
As of 2024, Jet Airways has yet to resume full operations, and the ownership battle rages on in Indian courts. What was once a proud symbol of India’s aviation sector now stands as a cautionary tale of the challenges that come with financial mismanagement, regulatory hurdles, and the high-stakes world of airline ownership. The once-promising future of Jet Airways now depends on the resolution of its complex ownership issues, and only time will tell if the airline can ever regain its wings or if it will be relegated to the annals of aviation history.
