IDEAS home Printed from https://ideas.repec.org/a/sae/anjomc/v21y2024i1p99-122.html
   My bibliography  Save this article

Financial Crisis at Jet Airways Limited: Turnaround or Bankruptcy

Author

Listed:
  • Siddhesh S. Soman
  • Krunal K. Punjani

Abstract

In 1992, Naresh Goyal started on a journey to build the best airline in India, Jet Airways. With rising market share and revenues, Jet Airways began climbing up the ladder of success. It gradually became one of the household names in the Indian aviation sector. In 2005, it came up with an initial public offering (IPO) to reach greater heights with large investments from the funding raised. A ‘paradigm shift’ in the Indian airline business came in 2006 with the increased competition and entry of low-cost carriers. The rise in the competition impacted Jet’s turnover, which was ultimately reflected in the diminishing profitability margins. With a series of industry challenges and questionable managerial decisions, Jet became a debt-ridden and loss-making enterprise from being one of the leaders in the aviation sector. Eventually, in April 2019, Jet Airways temporarily ceased its operations because of a lack of funding available to sustain it. The consortium of lenders, led by State Bank of India (SBI), faced a serious dilemma; whether to revive the airline by looking for potential investors or declare Jet bankrupt and begin the bankruptcy proceedings.

Suggested Citation

  • Siddhesh S. Soman & Krunal K. Punjani, 2024. "Financial Crisis at Jet Airways Limited: Turnaround or Bankruptcy," Asian Journal of Management Cases, , vol. 21(1), pages 99-122, March.
    • Handle: RePEc:sae:anjomc:v:21:y:2024:i:1:p:99-122
    DOI: 10.1177/09728201221080692
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/09728201221080692
    Download Restriction: no
    File URL: https://libkey.io/10.1177/09728201221080692?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Preeti Goel & A.K. Shukla, 2004. "An Exploration Of The Punctuated Equilbrium Paradigm: The Case Of Indian Low Cost Airlines," Paradigm, , vol. 8(2), pages 68-72, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.

      Corrections

      All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:anjomc:v:21:y:2024:i:1:p:99-122. See general information about how to correct material in RePEc.

      If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

      If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

      If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

      For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

      Please note that corrections may take a couple of weeks to filter through the various RePEc services.

      IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.