It looks like Jet Airways Ltd.’s luck has finally run out. India’s oldest privately owned airline is on the verge of shutting down all its flights — it already has perhaps fewer than 10 aircraft active — because it simply doesn’t have enough working capital. It’s more than a billion dollars in debt and has lost money for the last four quarters.
On one level, you could argue that this is a good sign for India: Its institutions are holding up. State-owned banks are Jet’s biggest creditors and they seem unwilling to throw more money at the airline without a clear revival plan. This is a big change from the past, when they kept supporting one of Jet’s rivals, the ill-fated Kingfisher AirlinesNSE -11.11 % Ltd., long after it seemed rational to do so.
