The Supreme Court on Thursday exercised its extraordinary constitutional powers to order the liquidation of troubled private air carrier, Jet Airways.
Launch in 1992, Jet Airways grew to be one of the biggest carriers in the country, with its market share of more than 21 per cent back in 2016. In its hayday, it operated from its primary hub Mumbai and secondary hubs at Chennai, New Delhi, Bengaluru, Kochi, and Kolkata, with more than 300 flights.
However, when SpiceJet and IndiGo entered the market and the subsequent tumbling of ticket fares in the mid-2010s, it went into deep financial losses. In October 2017, IndiGo overtook it as market leader. By 2019, it announced backruptcy, ceasing operations by April that year.
On November 7, 2024, the SC bench comprising Chief Justice DY Chandrachud, Justice JB Pardiwala and Justice Manoj Misra set aside an order by National Company Law Appellate Tribunal (NCLAT) that earlier decided the fate of the carrier.
By ordering the liquidation, the apex court has struck down the NCLAT decision approving the transfer of its ownership to Jalan Kalrock Consortium (JKC).
The bench criticised the NCLAT decision, much like what happened in the Byju's insolvency order, and said that Jet Airways' liquidation was in the interest of creditors, workers and other stakeholders.
