Aviation Insolvency After a Decade of The IBC: Structural Contradictions, Incremental Reform, and The Road Ahead

Author(s)	Mr. Sharansh Karn
Country	India
Abstract	A decade since the Insolvency and Bankruptcy Code, 2016, Indian aviation has emerged as a revealing test of the limits of a sector-neutral rescue regime. This paper argues that the IBC’s rescue-oriented architecture breaks down in airline insolvency because Sections 14 and 20 assume continued access to productive assets, while airlines depend on leased aircraft, regulatory approvals, and uninterrupted operations that cannot be preserved once distress begins . Through doctrinal analysis, case studies of Kingfisher Airlines, Jet Airways, and Go First, and comparative reference to the United States, the UK, and Gulf models, the paper shows that Indian airline insolvencies have repeatedly ended in operational extinction rather than rescue . Jet Airways demonstrates that formal resolution can fail to produce operational revival, while Go First reveals the self-defeating tension between moratorium and continuity . The paper concludes that airline distress exposes a broader limitation within generic insolvency law and that India requires a sector-sensitive framework.
Published In	Volume 8, Issue 6, November-December 2026
Published On	2026-11-03
DOI	https://doi.org/10.36948/ijfmr.2026.v08i06.91219

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