Tuesday, May 24, 2022

Jet shares are taking off but the flight path is getting crowded

The share price of Jet Airways rose 5 percent on Monday after the airline received its revalidated Air Operator Certificate (AOC) from the Directorate General of Civil Aviation (DGCA) on Friday.

The stock was trading 4.99 percent higher at Rs 118 per share around 12:40 PM on the BSE. The surge in Jet's stock price coincides with Rakesh Jhunjhunwala's Akasa Air unveiling the picture of its first aircraft.

The new owners of Jet also announced the airline's senior leadership team with the appointment of Prabh Sharan Singh as Chief Digital Officer; HR Jagannath as Vice President – Engineering; Mark Turner as Vice President – Inflight Product and Services and Vishesh Khanna as Vice President – Sales, Distribution, and Customer Engagement.

The DGCA granting the AOC to Jet Airways means the airline, which remained grounded for more than three years, can resume commercial flight operations.

The regulator's nod comes after Jet Airways successfully completed all proving flights — the last step to obtain the AOC for an airline — on May 17.

But catching up in a race is hard, let alone overtaking, especially when you are picking yourself up after a fall. Jet Airways, which is re-entering the aviation industry race after remaining out of it for long, is staring at possibly bigger challenges, now that it has to compete against more and better participants.

24/05/22 Niral Sharma/CNBC TV18

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