Thursday, June 13, 2019

Jet Airways may fly into the sunset

Jet Airways has hit another big air pocket with the National Stock Exchange of India deciding to pull out the shares of the embattled airline from daily trading. The bourse cited the carrier's failure to respond to queries about rumours in the market. Jet's securities will now be moved to the trade for trade segment with effect from June 28 as a "preventive surveillance measure", from the current rolling segment, which allows daily trading. With most of the top management quitting, it seems there's hardly anybody left to answer the bourse's queries. Shares of Jet, once the biggest private airline in India, have more than halved since the airline shut down its operations on April 17.

However, the stock counter was kept busy by investors looking to make a fortune speculating the future of the airline.

However, the talk that the last of the suitors have stopped negotiations with the lenders has come as a big blow to their hopes and also of the 16,000 employees of the airline, who have been unpaid for months altogether.

The airline has a total debt of over Rs 15,000 crore, while its most prized slots have been given to the rival airlines, though for a temporary period. Its pilots and other staff have made a beeline for jobs at rivals as well, with many announcing hiring Jet's staff in hundreds.

Time is ticking for the airline and if the lenders fail to stitch a deal soon, the airline may well end up into bankruptcy court soon.
13/06/19 DNA
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