Last week distressed airline Jet Airways finally threw in the towel and pulled the plug on all its operation. A note sent to the stock exchanges from the country’s one of the largest airline summed up its predicament: “Since no emergency funding from the lenders or any other source is forthcoming, the airline will not be able to pay for fuel or other critical services to keep the operations going.”
The big question is whether the airline will fly again or end up like the other big disaster story in Indian aviation: Kingfisher Airlines. Not only does its exit leave a gaping hole in aviation capacity, it has also put on line the future of some 15,000 employees, not to speak of the ₹8,000 crore debt owed to banks that could end up as write-offs, further exacerbating the bad debt position of the consortium of lenders led by the State Bank of India. Clearly, consumers, employees and the banks will be looking to see whether any of the bidders that have evinced interest will follow through.
