The story of Jet Airways’ rise, fall, and ultimate liquidation is a turbulent chapter in Indian aviation history. Once celebrated as India’s premier full-service airline, Jet Airways grounded its operations in April 2019 after a 25-year journey. With mounting debts, unpaid salaries, and dwindling funds, the airline’s final flight—S2-3502 from Amritsar to Mumbai—marked the end of an era.

When Jet Airways Ruled the Skies

Jet Airways was founded by Naresh Goyal, a former travel agent who began as a general sales agent for multiple international airlines. In 1993, Goyal launched Jet Airways as an air taxi operator, serving as one of the country’s earliest private airlines in a sector dominated by state-owned carriers. Over the next two decades, Jet Airways grew into a household name, known for its premium service, extensive domestic network, and substantial international reach.

At its peak, the airline employed over 20,000 people, including around 1,300 pilots, and operated a fleet of more than 120 aircraft. From domestic routes to international destinations, Jet Airways expanded its footprint, often seen as a benchmark for quality service in Indian aviation. However, behind the success lay mounting debts and financial mismanagement. Operating in a highly competitive environment, the airline struggled to compete against low-cost carriers that rapidly gained market share in India’s price-sensitive market.

Turbulence in Jet Airways

As Jet Airways’ debt grew, so did the pressure on the airline to sustain its full-service model, which included in-flight meals and premium customer service, features that were increasingly hard to justify in a market that demanded affordability above all else. With heavy competition from budget carriers like IndiGo and SpiceJet, Jet Airways’ financial health deteriorated, leading to delayed payments to employees, vendors, and creditors.

The crisis reached its peak in early 2019. Despite efforts to secure emergency funding, Jet Airways was unable to meet its immediate financial obligations. On April 17, 2019, after months of deteriorating conditions, the airline’s last flight, S2-3502, took off from Amritsar to Mumbai at 10:30 p.m. and landed at 12:22 a.m., marking the end of Jet Airways’ operations. In a statement, Jet Airways cited a lack of emergency funding as the reason for its temporary suspension, announcing that it could no longer pay for fuel or other essential services.

The Fall

Following the suspension, lenders initiated an insolvency process to recover their dues. Jet Airways’ debts at the time were reported to be over Rs 8,500 crore, with additional amounts owed to vendors and customers. In June 2019, the National Company Law Tribunal (NCLT) accepted the insolvency petition. The process saw several potential buyers come forward, but none could successfully revive the airline’s fortunes.

In 2021, the Jalan Kalrock Consortium (JKC) emerged as the successful bidder in the insolvency resolution process, raising hopes of a potential relaunch for Jet Airways. However, disagreements between the consortium and the airline’s creditors stalled the resolution process. Despite having won the bid, JKC was unable to fulfill its payment obligations, resulting in prolonged delays and ultimately causing the creditors to lose faith in the proposed plan.

The prolonged insolvency and stalled resolution came to an end on November 2024, when the Supreme Court, exercising its powers under Article 142 of the Constitution, ordered the liquidation of Jet Airways. The court’s ruling also directed the forfeiture of Rs 200 crore infused by JKC and allowed State Bank of India (SBI) and other creditors to encash a ₹150 crore performance guarantee. This move signified the court’s conclusion that Jet Airways’ liquidation was necessary to conclude the unresolved insolvency.

The liquidation marks a sad closure for Jet Airways, a carrier that once redefined air travel in India. Over the past five years, the airline’s grounded fleet and disrupted employees have been a stark reminder of the airline’s abrupt collapse. Among those most affected by Jet Airways’ demise are the 20,000 employees who lost their livelihoods overnight and the vendors and creditors still waiting to recoup their losses. Former employees recall the announcement of the airline’s suspension as a devastating moment, with pilots, crew, and ground staff left uncertain about their future as Jet Airways’ fate hung in limbo.

The collapse of Jet Airways underscores the intense challenges facing India’s aviation industry. As competition heats up and consumers demand low fares, airlines must balance operational costs with financial sustainability. Jet Airways’ journey from a trusted full-service airline to a grounded entity offers a cautionary tale about the importance of prudent financial management and the risks of overextension in a volatile market.

While Jet Airways’ planes gather dust, its legacy remains a crucial part of India’s aviation story. For nearly 25 years, the airline set a standard for service and comfort, remembered fondly by passengers who experienced its premium offerings. However, in a sector as competitive and capital-intensive as aviation, even the best service cannot compensate for the need for robust financial health.

As Jet Airways exits the scene, its former place in the skies has been filled by newer players, including budget carriers and international giants eyeing India’s growing aviation market. The liquidation order, while a blow to those still hopeful for the airline’s return, brings closure to a chapter that once symbolised India’s ambitions in global aviation. The tale of Jet Airways is one of dreams, success, and caution—a reminder of the challenges of sustaining growth and the importance of sound financial stewardship in an industry where even giants can fall.

(With agency inputs)