Jet Airways is continuing to face a negative streak since collapsing in April. After the possibility of a quick sale has slowly slipped away, it seems more unlikely than ever before that Jet Airways will fly again. Currently, the airline is staring down the barrel of insolvency proceedings that are highly likely to go through.
Flightglobal reports that the State Bank of India filed court documents to move Jet Airways into insolvency resolution. Ultimately, this move from the State Bank of India shows that Jet Airways is more or less unviable, following the recent unsuccessful sale attempt.
In addition, some of Jet’s creditors previously filed documents in court seeking to have Jet Airways declared insolvent.
The failed sale
Jet Airways was previously up for sale. The State Bank of India was managing the process and there was some healthy interest from various groups, including Etihad. However, that failed to materialize, signalling that Jet was not appealing enough for any entity to invest in.
This makes sense since Jet Airways lost plenty of valuable slots and aircraft in their slow retraction of services. In addition, resurrecting a collapsed carrier is a difficult task. With rivals scooping up most of Jet’s lost capacity, it isn’t terribly surprising that very few entities were interested in the airline.
Stock exchange restrictions
Jet’s stock was fluctuating wildly. As a result, the National Stock Exchange of India removed Jet Airways from trading until June 28th. Furthermore, Jet Airways hadn’t released financial statements typically due in March. That means that investors don’t have much of an idea of Jet’s financial standing. Although, we can guess that it isn’t very good.
Previous court proceedings
Only a few days ago, some of Jet’s creditors filed documents with the National Company Law Tribunal to have the carrier declared insolvent. This would give the creditors a chance to recover their dues. As we know, Jet Airways owes a lot of money to both creditors and staff. Some of Jet’s former staff haven’t been paid in quite some time.
Aside from Naresh Goyal, there doesn’t seem to be any interest in putting together a team to run Jet Airways. As a result, it is highly likely that Jet Airways will be wound up. Plenty of airlines have expressed interest in Jet’s aircraft and slots.
It seems like the end is here for Jet Airways. The State Bank of India has given up on the carrier and it is unlikely that any other airline or entity will rush in to save the carrier.
Do you think Jet Airways should be declared insolvent? Do you want to see Jet Airways fly again? Let us know in the comments!