Mumbai: Jet Airways shares plunged more than 32 per cent on Thursday, hours after the Indian carrier’s final flight landed following a decision to ground its entire fleet.
The Mumbai-based carrier is on the edge of bankruptcy and has failed to secure emergency funding from banks, forcing it to suspend all operations late on Wednesday.
Jet’s stock fell more than 32 per cent to Rs162.15 on the Bombay Stock Exchange on Thursday. It was worth more than four times that a year ago.
The lenders that control the airline said on Thursday they were focusing on finding a buyer for Jet, which was until recently India’s second-biggest carrier by market share.
“Lenders are reasonably hopeful that the bid process is likely to be successful in determining fair value of the enterprise in a transparent manner,” they said in a statement.
The State Bank of India-led consortium is looking to sell a controlling stake in Jet and has shortlisted four potential buyers, including Etihad Airways, which already owns 24 per cent. The four have until May 10 to submit formal bids. But until then, the carrier’s remaining fleet is grounded, with a final flight from Amritsar to Mumbai landing in the early hours of Thursday. Several hundred staff gathered outside the airline’s headquarters in Mumbai on Thursday, chanting “We want justice” and “Please save Jet Airways”.
Zoya Khan, a 23-year-old flight attendant, said she was “extremely concerned” about her future. “This is my first job,” she said. “We just want the management and the government to figure out a solution.”
A collapse of Jet, and the loss of more than 20,000 jobs, would deal a blow to Prime Minister Narendra Modi’s pro-business reputation as he seeks a second term in ongoing national elections. — AFP
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