Unlike most other companies facing insolvency proceedings, Jet Airways Ltd.’s fate hinges on one key legal question. The answer will determine whether Jet comes out of Insolvency and Bankruptcy Code with a resolution plan or heads to liquidation.
he Ministry of Civil Aviation, the resolution professional and Sahara India Commercial Corp. completed their arguments in Jet Airways insolvency case earlier this week. The Mumbai bench of the National Company Law Tribunal has reserved its order.The key question before the tribunal is- whether Jet can reclaim landing slots that have now been allotted to other airlines.
landing slot is a permission given to a particular airline to use the full range of airport infrastructure necessary for arrival and departure. The government has denied Jet any historical right over the slots allotted to it before it went into insolvency.