Jet Airways Shares Nosedive After Airline Suspends All Flights
Shares fell to Rs 158.70 compared with previous close of Rs 240.50 Jet Airways suspended all of its flying operations late on Wednesday Grounding of Jet flights came after lenders denied a bailout to airline
Jet Airways shares nosedived as much as 34 per cent on Thursday, a day after the cash-starved airline suspended all of its flying operations. The decision by Jet Airways late on Wednesday, to indefinitely suspend its domestic as well as international operations, came after the ailing airline failed to secure a bailout from lenders. On the National Stock Exchange (NSE), the Jet Airways shares plunged to Rs 158.70 apiece at the day's lowest point in morning trade, compared with its previous close of Rs 240.50.
Jet Airways' group of lenders said on Thursday morning that they are "reasonably hopeful that the bid process is likely to be successful". Jet Airways - once country's largest private airline - took the decision to stop flying on Wednesday evening after the lenders declined to release emergency funds for the carrier.
Saddled with a debt pile of more than Rs. 8,000 crore, Jet Airways owes vast sums to lessors, suppliers, pilots and oil companies. The group of lenders - led by State Bank of India - want a new investor to buy a stake of up to 75 per cent in Jet Airways.
SBI said on Wednesday that it had received expression of interest (EoI) documents by bidders for stake in the airline, and the bidding process would conclude on May 10.
At 10:03 am, Jet Airways shares traded 26.84 per cent lower at Rs 175.95 apiece on the NSE.
On the Bombay Stock Exchange (BSE), Jet Airways shares plunged as much as 30.29 per cent to an intraday low of Rs 168.60 apiece.
Investors have doubts over whether a successful deal can be completed, news agency Reuters quoted Shukor Yusof, the head of aviation consultancy Endau Analytics, as saying. "Jet Airways' value is dwindling with each passing day,” he said.