The Jet Airways crisis underscores flaws in India’s insolvency process, raising questions on how bankruptcy procedures work in the aviation sector.
The airline’s closure revealed slow legal procedures, inadequate protections for creditors, and challenges in restructuring companies within a timely manner.
India's bankruptcy laws aim to speed up the resolution of insolvencies but Jet Airways' case shows the system often struggles with complex industries like aviation.
Jet Airways' inability to revive despite efforts points to deficiencies in the Corporate Insolvency Resolution Process (CIRP) that need urgent attention.
Creditors, including banks and suppliers, are often left facing delayed payouts, which harms confidence in India's insolvency mechanisms.
The case calls for more transparency and better dispute resolution mechanisms to ensure a quicker, fairer approach to handling corporate defaults.
Policymakers may need to revisit and reform India’s bankruptcy framework, particularly for sectors prone to high financial volatility, like aviation.