In the aftermath of collapse of Jet Airways, the Ministry of Civil Aviation temporarily reallocated over 2,500 of the airline’s slots, including prime ones in airports such as Delhi and Mumbai. On the back of these new slots, a research report by securities firm Elara Capital said, the market share of low-cost carriers SpiceJet, IndiGo and GoAir are expected to go up by 6 per cent, 5 per cent and 2 per cent, respectively.
Owing to a financial crunch, Jet Airways suspended operations on April 17, and was admitted by the National Company Law Tribunal for bankruptcy proceedings under the Insolvency and Bankruptcy Code on June 20. The civil aviation ministry, in order to prevent a sudden crunch in capacity leading to a rise in fares, reallocated Jet’s slots to other airlines for three months. A senior government official had said that the slots would be returned to the airline in case it was able to get back up. Read More