Topic Of The Day:-” Beyond Mayday: On Bankruptcy Code For Aviation Sector“
The Jet Airways Case Has Takeaways For The Bankruptcy Code As Well As For Other Airlines
Jet Airways may have finally run out of runway. Two months after Jet halted all flight operations, lenders to the beleaguered full service airline have decided to refer it to the National Company Law Tribunal and initiate insolvency proceedings in a bid to recover the money owed to them. The lenders’ consortium arrived at this conclusion after unsuccessfully trying to rope in a white knight — an investor who would have helped put the airline’s flights back in the air, thus saving thousands of jobs and potentially helping turn around the carrier. And while, theoretically, the Insolvency and Bankruptcy Code was conceived to help achieve a resolution that could potentially protect a running business and help revive it through capital restructuring under a new promoter, in Jet’s case the chances of a resolution seem rather remote now. The lenders have to shoulder a fair share of the blame as the delay in initiating the insolvency process has drastically eroded some of the airline’s key assets, including customer goodwill, its aircraft fleet, routes and landing slots and even its experienced flight crew. Ironically, while the banks may have viewed Jet’s request for emergency lines of credit in the run-up to the suspension of operations as ‘good money chasing bad money’, nothing could potentially kill an airline more effectively than protracted grounding. And one doesn’t even need to look too far back in time to recall what happened to Kingfisher Airlines.
It would surely have been instructive for the creditors to revisit the Chapter 11 bankruptcies that a clutch of U.S. legacy airlines opted for in the early 2000s. That protection helped Delta and United to not only survive the crisis of confidence in aviation triggered by the terrorist attacks of September 11, 2001, the surge in jet fuel and labour costs and the intense competition from low-cost carriers, but emerge stronger and rank among the top five contemporary American carriers. A look at some of Jet’s industry-specific operational metrics, at least until the recent cash-starved implosion, show an airline that had consistently posted growth in terms of revenue passenger kilometres and cargo tonnage till the 2017-18 financial year. So it wasn’t a lack of business that led to Jet’s stall and crash. For the health of India’s airline industry, it will be crucial for policymakers to review several issues that affect viability: from the way aviation turbine fuel is taxed, to the charges airports levy. The carriers too need to reappraise their pricing strategies and ensure that in the quest for market share they don’t end up in a race to the bottom. The government must take a closer, harder look at the IBC and examine the viability of a framework akin to Chapter 11 that may ultimately be more suited to industries like aviation.
MEANINGS AND WORDS
- run out
Meaning: (of a supply of something) be used up.
Synonym: be used up, dry up, be exhausted, be finished, give out, peter out, fail
Antonym: be plentiful
Example Sentence: “our food is about to run out”
Meaning: bring or come to an abrupt stop.
Tamil Meaning: நிறுத்தப்பட்டது
Synonym: Stop, come to a halt, come to a stop, come to a standstill
Antonym: start, go, continue
Example Sentence: “Len halted and turned round”
Meaning: put in a very difficult situation.
Tamil Meaning: தொந்தரவுக்குள்ளான
Synonym: Besieged, under siege, blockaded, surrounded, encircled
Antonym: Aid, Please, Help
Example Sentence: “he led a relief force to the aid of the beleaguered city”
Meaning: direct the attention of someone to.
Tamil Meaning: குறிப்பிடு
Synonym: pass, hand on, send on, transfer, remit, direct, leave, commit
Antonym: Ignore, Neglect, Remove
Example Sentence: “I refer my honourable friend to the reply that I gave some moments ago”
Meaning: a body established to settle certain types of dispute.
Tamil Meaning: தீர்ப்பாயம்
Synonym: arbitration board/panel, board, panel, committee; industrial tribunal
Example Sentence: “an industrial tribunal ruled that he was unfairly dismissed”
Meaning: cause (a process or action) to begin.
Tamil Meaning: தொடங்க / துவக்கி வை
Synonym: Begin, start off, commence, take action on, usher in; institute, inaugurate
Antonym: complete, finish
Example Sentence: “the government has initiated an extensive programme”
Meaning: the state of being insolvent.
Synonym: Bankruptcy, liquidation, failure, collapse, ruin, financial ruin, ruination
Example Sentence: “the club was facing insolvency”
Meaning: have an obligation to pay or repay (something, especially money) in return for something received.
Tamil Meaning: கடமைப்பட்டிருக்கிறது
Synonym: be in debt (to), be indebted (to), be in arrears (to), be under an obligation (to)
Antonym: Settle up
Example Sentence: “they have denied they owe money to the company”
Meaning: an association, typically of several companies.
Tamil Meaning: கூட்டமைப்பு
Example Sentence: “the amount awarded for loss of consortium must be included”
- back in the air
Meaning: In one’s and/or others’ awareness; evident in the immediate surroundings.
Synonym: immediate, Impending, inevitable
Antonym: avoidable, distant, escapable
Example Sentence: There was a buzz in the air at the festival, and it was all due to the return of the legendary bluesman
- turn around
Meaning: an abrupt or unexpected change, especially one that results in a more favourable situation.
Tamil Meaning: திரும்பவும்
Synonym: Cancellation, Turnabout, Annulment
Antonym: Approval, Enactment, Validation
Example Sentence: “it was a remarkable turnaround in his fortunes”
Meaning: form or devise (a plan or idea) in the mind.
Tamil Meaning: சிந்தித்து
Synonym: Think up, think of, come up with, dream up, draw up, devise, form, formulate
Antonym: Neglect, Avoid, Disbelieve
Example Sentence: “the dam project was originally conceived in 1977”
Meaning: restore to life or consciousness / regain life, consciousness, or strength.
Tamil Meaning: புதுப்பிக்க
Synonym: Resuscitate, bring round, bring to life, bring back, bring someone (back) to their senses
Example Sentence: “both men collapsed, but were revived”
Meaning: make (someone or something) late or slow.
Tamil Meaning: தாமதம் / தாமதப்படுத்து
Synonym: detain, hold up, make late, retard, keep (back), slow up
Antonym: advance, bring forward
Example Sentence: “a few guests were delayed by rush-hour traffic”
Meaning: the period preceding a notable event.
Synonym: Lead-In, Warm-Up
Example Sentence: “a programme aimed at lowering unemployment in the run-up to the next election”
Meaning: lasting for a long time or longer than expected or usual.
Tamil Meaning: நெடிய
Synonym: Prolonged, extended, stretched out, drawn out, long-drawn-out
Antonym: Curtail, shorten
Example Sentence: “a protracted and bitter dispute”
Meaning: useful and informative.
Tamil Meaning: போதனை / தகவல் நிறைந்த
Synonym: Informative, instructional, informational, illuminating, enlightening, revealing
Example Sentence: “it is instructive to compare the two projects”
Meaning: (of a response) caused by particular action, process, or situation.
Tamil Meaning: தூண்டப்படலாம்
Synonym: activate, set off, set going, trip
Antonym: Destroy, End, Halt
Example Sentence: “an allergy can be triggered by stress or overwork”
Meaning: of the present time; modern:
Tamil Meaning: சமகால
Synonym: Current, Instant, Latest
Antonym: Future, Old
Example Sentence: a lecture on the contemporary novel.
Meaning: an instance of something collapsing violently inwards.
Tamil Meaning: உள்வெடிப்பைத்
Synonym:Botch, bust, Checkmate
Antonym: Accomplishment, Advantage, Benefit
Example Sentence: “the star undergoes a violent implosion caused by gravity”
Meaning: ability to work successfully.
Tamil Meaning: நம்பகத்தன்மையை
Example Sentence: “an interest in the long-term viability of British companies”
Meaning: appraise or assess again or in a different way.
Example Sentence: “the Tory party has reappraised its strategy”
Meaning: impose a tax, fee, or fine on.
Tamil Meaning: வசூல் செய்தல்
Synonym: Impose, charge, exact, demand, raise, collect, gather; tax;
Example Sentence: “there will be powers to levy the owner”
Meaning: of similar character.
Tamil Meaning: ஒன்றான
Synonym: Similar, related, close, near, corresponding, comparable
Example Sentence: “something akin to gratitude overwhelmed her”
Meaning: a time of intense difficulty or danger.
Tamil Meaning: நெருக்கடி
Synonym: catastrophe, calamity, cataclysm, emergency, disaster
Antonym: Agreement, Calm, Benefit
Example Sentence: “the current economic crisis”