One potential outcome is that Mallya throws in the towel, possibly to revive the carrier on a smaller scale.
"It needs to restart from scratch. Say we only have X-number of planes and these are the only routes we fly," said the ex-director, who believes a white knight investor will emerge.
But Sharan Lillaney, aviation analyst at Angel Broking in Mumbai, said an equity injection looks unlikely.
"The company has a mountain of debt and has a huge liability towards employees, oil companies and leasing companies. So I think, more or less, the company's time is up."