Introduction

On November 07, 2024, the Supreme Court of India (“Court”) in its judgment in State Bank of India & Ors. vs. The Consortium of Mr. Murari Lal Jalan and Mr. Florian Fritsch & Anr.,^[1] directed the liquidation of Jet Airways (India) Limited (“Jet”), bringing an end to the five-year long saga of efforts to revive the beleaguered airline.

India’s Insolvency and Bankruptcy Code, 2016 (code), has revolutionised the country’s approach to insolvency, establishing a structured framework for resolving distressed assets while incorporating elements of inclusivity and accessibility. This legislation has become fundamental for businesses and financial institutions, especially as India further integrates into the global economy. The code’s protection of foreign creditors is particularly significant, as it ensures that foreign investors can confidently engage with the Indian economy without hindrance or undue trepidation.

The past couple of years have seen a number of major airlines collapse, including Monarch and Air Berlin. Unfortunately, this year has already seen the number of casualties pile up with the likes of WOW Air, FlyBMI, Primera Air and Jet Airways all ceasing operations. With Thomas Cook – the UK’s oldest travel operator – the latest in jeopardy, we look at Lexology’s recent articles in an attempt to analyse this trend and explore the legislation being introduced to support the aviation industry.

Need some AIR – can airlines operate when insolvent?

I. NCLAT approves the resolution plan submitted by ArcelorMittal in the resolution proceedings in respect of Essar Steel India Limited while modifying the distribution of money to the financial and the operational creditors