Jet Airways Ownership Saga: From Resolution to Dissolution?

Abhishek Nayar

10 May 2024

Jet Airways, once a stalwart in the Indian aviation industry, now finds itself entangled in a legal quagmire as the ownership transfer process hits roadblocks. The recent courtroom drama between senior lawyer Harish Salve and the Chief Justice of India-led bench of the Supreme Court sheds light on the challenges facing the resolution of Jet Airways' insolvency proceedings.

The Legal Battle Unfolds

In a courtroom exchange that echoed the frustrations of lenders, Harish Salve, representing the lenders, minced no words as he expressed concerns over the capabilities of the Jalan-Kalrock Consortium (JKC) to take over Jet Airways' ownership. Salve's assertion that "From resolution, this should go to dissolution" underscores the gravity of the situation.

Questioning JKC's Capability

Salve raised pertinent questions regarding JKC's failure to comply with court directives, particularly its inability to deposit Rs. 150 crore as ordered by the Supreme Court. He highlighted JKC's struggle to meet crucial requirements, such as possessing an international permit and having a fleet size of at least twenty aircraft, which it currently falls short of by fifteen.

In a move that added fuel to the fire, JKC's attempt to adjust Rs. 150 crore from an existing bank guarantee was rebuffed by the Supreme Court, further complicating the ownership transfer process.

Lenders' Plight and A Timely Resolution at Stake

The plight of lenders, who have borne substantial expenses throughout the Corporate Insolvency Resolution Process (CIRP), adds another layer of complexity to the saga. Salve underscored the exorbitant costs incurred by lenders, amounting to Rs. 386 crores during CIRP proceedings, along with monthly expenses of Rs. 22 crores to maintain the corporate debtor.

The essence of the Insolvency and Bankruptcy Code (IBC), which emphasizes timely resolution of insolvency cases, stands at risk amidst the protracted legal battle surrounding Jet Airways' ownership transfer. Salve's impassioned plea for a swift resolution resonates with the overarching goal of the IBC.

The Way Forward

As the courtroom drama unfolds, the fate of Jet Airways hangs precariously in the balance. The adjournment of the hearing to May 17 signals a pivotal moment in the trajectory of the resolution process. The Chief Justice of India-led bench is poised to deliver final orders, which could chart the course for Jet Airways' future.


Jet Airways' ownership saga encapsulates the complexities inherent in corporate insolvency proceedings. The clash between stakeholders underscores the challenges of navigating through legal intricacies to achieve a resolution. As the courtroom drama unfolds, the question lingers: Will Jet Airways find its wings once again, or is dissolution inevitable? Only time will tell.

With Inputs from CNBC TV18

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China's Aviation Cooperation with Airbus Amidst Global Trade Tensions

Abhishek Nayar

09 May 2024

In the realm of international diplomacy, economic partnerships often take flight on the wings of strategic cooperation. Recently, China's engagement with Airbus has taken center stage, signaling not only a deepening of aviation ties but also offering a glimpse into the intricate dance of geopolitics and commerce. Against the backdrop of strained trade relations, the memorandum of understanding (MOU) signed between China's state planner and Airbus highlights a pivotal moment in Sino-European relations.

Aviation Cooperation Takes Off and Xi Jinping's Visit to France

China's state media, Xinhua, reported the signing of a memorandum of understanding (MOU) between China's state planner and Airbus, solidifying a commitment to deepen aviation cooperation. This agreement not only underscores China's growing significance in the global aviation market but also positions Airbus as a key player in the nation's aviation infrastructure development.

During President Xi Jinping's visit to France, alongside French President Emmanuel Macron, joint statements were released, and interdepartmental agreements were reached across multiple sectors. Among these were areas of mutual interest such as artificial intelligence, the Middle East, and agriculture. Such collaborations signify a broader commitment to strengthening bilateral ties amidst global uncertainties.

Potential Airbus Aircraft Order

Sources reveal ongoing negotiations between Airbus and China over a potentially significant aircraft order. While China has historically signaled large jet orders during state visits, the current talks between Airbus and China's CASC buying agency remain uncertain. Despite the looming deadline, both parties are engaged in discussions that could shape the future of aviation cooperation between China and Europe.

Navigating Trade Tensions and Cooperation Beyond Aviation

Xi's visit to France comes at a critical juncture, with trade tensions between China and the European Union simmering. Amidst several investigations targeting China, this diplomatic mission serves as a platform to reaffirm commitment to bilateral cooperation while addressing contentious trade issues. The agreements reached between Xi and Macron underscore a concerted effort to navigate these challenges through dialogue and collaboration.

Beyond aviation, Xi and Macron also reached cooperation agreements aimed at strengthening collaboration among small and medium-sized enterprises (SMEs). This move reflects a broader commitment to fostering economic synergies and innovation across diverse sectors, further cementing the foundation of Sino-European partnership.


As China's aviation ambitions soar to new heights, the memorandum of understanding (MOU) with Airbus symbolizes more than just a commercial transaction—it represents a convergence of economic interests, diplomatic maneuvers, and strategic alliances. Against the backdrop of global trade tensions, such collaborations offer a glimmer of hope for constructive engagement and mutually beneficial partnerships in an increasingly interconnected world.

With Inputs from Reuters

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Emirates Chairman Expresses Discontent Over 777X Delays

Abhishek Nayar

09 May 2024

The aviation industry's anticipation for Boeing's 777X, touted as the largest twin-engine jet with seating for approximately 400 passengers, has been met with frustration as delays persist. Emirates, a significant customer eagerly awaiting the aircraft, has voiced dissatisfaction with Boeing's handling of the situation. Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Emirates and a prominent member of Dubai's ruling family, expressed concerns at the Arabian Travel Market tourism trade exhibition in Dubai, shedding light on the implications of these delays for the airline.

Boeing's Promise and Emirates' Expectations

Boeing, in its engagements with Emirates, had assured resolution of issues plaguing the 777X program, including certification delays. However, Sheikh Ahmed conveyed his disappointment, stating that the promised fixes were yet to materialize. The prolonged uncertainty surrounding the delivery timeline has placed considerable strain on Emirates, known for its exclusive use of large twin-engine jets.

Impact on Emirates Operations

The extended delay in the 777X's entry into service has prompted Emirates to revise its operational strategy. Sheikh Ahmed indicated that the airline would extend the utilization of its existing fleet beyond initial projections, a decision driven by the unpredictable timeline for receiving the new aircraft. This strategic adjustment underscores the operational challenges posed by the delay and highlights Emirates' commitment to maintaining service quality amidst adversity.

Boeing's Management Overhaul Amidst Industry Pressure

Boeing's woes extend beyond the 777X program, with the company grappling with broader challenges within its management structure. Following a mid-air panel blowout incident involving a 737 MAX aircraft in January, Boeing has faced intensified scrutiny from stakeholders, including airlines, regulators, and investors. The company's efforts to overhaul its management reflect a response to mounting pressure and a recognition of the need for comprehensive reform to restore confidence in its products and operations.

Certification Outlook and Future Prospects

Despite the setbacks, Sheikh Ahmed remains cautiously optimistic about the certification timeline for the 777X. He projected certification to occur in the first quarter of 2025, providing a glimmer of hope amid the prevailing uncertainty. However, the path forward remains fraught with challenges, necessitating concerted efforts from Boeing to address existing issues and regain trust within the aviation community.


Emirates' Chairman Sheikh Ahmed's candid remarks underscore the severity of the challenges facing Boeing and the broader aviation industry. The prolonged delays in the 777X program have not only strained relations between Boeing and its key customer but also underscored the need for greater accountability and transparency in aircraft development and certification processes. As stakeholders closely monitor developments, the onus remains on Boeing to deliver on its promises and restore confidence in its ability to navigate the turbulent skies ahead.

With Inputs from Reuters

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Can Spirit AeroSystems Weather the Storm of Financial Turmoil?

Abhishek Nayar

09 May 2024

Amidst the turbulence of the aerospace industry, Spirit AeroSystems finds itself in a precarious position. The company, once spun off from aerospace giant Boeing, now faces mounting losses, strained cash reserves, and uncertain negotiations with key players in the industry. As it grapples with the fallout from setbacks such as the 737 MAX crisis and intricate talks with both Boeing and Airbus, the question arises: Can Spirit AeroSystems navigate its way through this storm of financial turmoil?

Heavy Losses and Cash Burn

The first quarter of 2024 painted a grim picture for Spirit AeroSystems. Posting heavy losses and burning through cash at a faster rate than anticipated, the company's financial health took a significant hit. With a net loss of $617 million and a cash burn of $444 million, Spirit's balance sheet reveals a troubling trend, far surpassing analysts' expectations.

Strain on the Supply Chain

CEO Pat Shanahan highlighted the dual nature of the challenges faced by Spirit AeroSystems – both commercial and operational. The strain on the supply chain, exacerbated by the turmoil at top customer Boeing, adds further complexity to the company's predicament. Delays in plane deliveries and quality checks imposed by regulatory bodies only compound the existing pressures on Spirit's operations.

Roadblocks in Acquisition Talks

Boeing's discussions to acquire Spirit AeroSystems have encountered roadblocks, with negotiations complicated by parallel talks with rival Airbus. The latter now contributes significantly to Spirit's revenue, further entangling the situation. Reports suggest that Airbus demands compensation to absorb Spirit's loss-making divisions, adding another layer of complexity to the acquisition talks.

Exploring Options for Liquidity

In response to its financial challenges, Spirit AeroSystems is exploring various avenues to bolster its liquidity. From issuing equity or debt financing to restructuring operations and seeking customer advances, the company is leaving no stone unturned in its quest for financial stability. However, the outcome remains uncertain, contingent upon successful negotiations with Boeing and Airbus.

Analyst Perspectives

Industry analysts weigh in on Spirit AeroSystems' precarious position, emphasizing the critical importance of reaching agreements with key stakeholders. The company's financial results underscore the urgency of its situation, potentially influencing the outcome of negotiations. As Robert Stallard from Vertical Research Partners notes, the company's future hinges on its ability to secure agreements with Boeing and Airbus.


As Spirit AeroSystems navigates through the storm of financial turmoil, its fate hangs in the balance. With heavy losses, strained cash reserves, and intricate negotiations with industry giants Boeing and Airbus, the path ahead remains uncertain. The company's ability to weather these challenges and emerge stronger will depend on its agility in addressing operational hurdles, securing financial support, and navigating complex negotiations. Only time will tell whether Spirit AeroSystems can overcome the odds and emerge triumphant in the face of adversity.

With Inputs from Reuters

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SpiceJet Faces Insolvency Petition by Aircastle

Abhishek Nayar

09 May 2024

In a dramatic legal development, SpiceJet, one of India's prominent carriers, finds itself embroiled in a legal battle as Aircastle, an aircraft lessor based in Ireland, pushes for insolvency proceedings against the airline. The National Company Law Tribunal (NCLT) has stepped into the fray, raising crucial questions about the representation of operational creditors in corporate insolvency resolution processes (CIRP) and the permissibility of multiple petitions against the same corporate debtor under the Insolvency and Bankruptcy Code, 2016.

The Legal Standoff Unfolds

The NCLT, in a recent hearing, directed SpiceJet to respond within 15 days to Aircastle's insolvency petition. The crux of the matter lies in whether a power of attorney holder can legitimately represent an operational creditor in a CIRP petition. SpiceJet's legal counsel has challenged the maintainability of Aircastle's petition on this ground, citing that it was filed by a power of attorney holder on behalf of the operational creditor, which, according to SpiceJet, contravenes the law.

Question of Maintainability

SpiceJet's argument hinges on the contention that Aircastle previously lodged another petition against the airline, raising concerns about the permissibility of multiple petitions against the same corporate debtor. Aircastle, however, maintains that the power of attorney granted to the petitioner is backed by a board resolution, thereby justifying its position under the IBC.

Debts in Dispute

Central to Aircastle's petition are allegations of default by SpiceJet concerning rental charges for two Boeing aircraft, totaling approximately ?50 crore. Aircastle's counsel has clarified that each petition corresponds to a distinct debt owed by SpiceJet, underscoring the specificity and legitimacy of their legal actions.

Implications and Conclusion

The legal confrontation between SpiceJet and Aircastle underscores the complexities inherent in corporate insolvency proceedings, particularly concerning the representation of operational creditors and the admissibility of multiple petitions against a single debtor. The NCLT's forthcoming decision will not only shape the trajectory of this particular case but also set important precedents for future insolvency disputes within the aviation sector and beyond. As stakeholders await the tribunal's ruling, the outcome of this legal saga carries significant ramifications for both SpiceJet and Aircastle, with broader implications for India's insolvency framework.

With Inputs from Economic Times

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Why Did oneworld Choose Colombo for Its Business Resilience and Safety Meeting?

Abhishek Nayar

09 May 2024

In a significant convergence of global aviation leaders, SriLankan Airlines recently played host to the 2024 oneworld Business Resilience and Safety Best Practice Group meeting in Colombo. This biannual event, organized by the oneworld alliance, saw representatives from 11 member airlines convene in the vibrant capital city of Sri Lanka. Amidst the backdrop of Colombo's rich culture and bustling energy, delegates engaged in fruitful discussions, exchanging insights, and exploring innovative approaches to aviation safety and resilience.

Sri Lanka's Moment in the Spotlight

The choice of Colombo as the host city for this prestigious gathering was a testament to SriLankan Airlines' growing prominence within the oneworld alliance. As a member of this esteemed global airline network, SriLankan Airlines showcased its commitment to excellence by providing a conducive environment for the exchange of best practices and industry-leading initiatives.

A Platform for Collaboration and Learning

The 2024 oneworld Business Resilience and Safety Best Practice Group meeting served as a valuable platform for members of the alliance to come together and address critical issues facing the aviation industry. Through a series of interactive sessions and workshops, delegates shared their experiences, challenges, and innovative solutions, fostering collaboration and driving collective progress in enhancing aviation safety and resilience.

Exploring Colombo's Charms

Beyond the confines of the meeting rooms, delegates had the opportunity to immerse themselves in the vibrant tapestry of Colombo's sights and sounds. From the historic Galle Face Green to the bustling markets of Pettah, Colombo offered a plethora of experiences for delegates to discover and enjoy during their visit. Cultural excursions, culinary adventures, and leisurely strolls provided a welcome respite from the intensity of the conference proceedings.

A Shared Commitment to Excellence

As the meeting drew to a close, delegates departed with a renewed sense of purpose and a deeper appreciation for the collective efforts underway to ensure the safety and resilience of the global aviation industry. The 2024 oneworld Business Resilience and Safety Best Practice Group meeting in Colombo underscored the unwavering commitment of oneworld member airlines to uphold the highest standards of safety, professionalism, and service excellence.

Looking Ahead

As SriLankan Airlines and the oneworld alliance chart a course for the future, the insights and initiatives exchanged during the 2024 Business Resilience and Safety Best Practice Group meeting will continue to guide their efforts in navigating the ever-evolving landscape of the aviation industry. With a shared vision and a spirit of collaboration, oneworld member airlines are poised to overcome challenges and embrace opportunities, ensuring a safer, more resilient future for global aviation.