Stocks

Jet Airways tank 19% amid reports of temporary shut down of operations

Reuters April 16 | Updated on April 16, 2019 Published on April 16, 2019

Jet’s pilots will gather at the airline’s head office on Monday to seek clarity on their salary dues

Shares of Jet Airways plunged nearly 19 per cent on Tuesday amid reports that the company is likely to temporarily shut down its operations.

The scrip which had opened the day on a weak note further ended 7.62 per cent lower at Rs 241.85 on BSE.  At NSE, shares closed lower by 7.72 per cent at Rs 241.50. The BSE has sought clarification from Jet Airways (India) Ltd with reference to news that it is likely to temporarily shut down its operations.

 Jet Airways is grappling with acute financial crunch and is operating less than 10 planes besides temporarily suspending international operations.  Civil Aviation Minister Suresh Prabhu has called for a review of issues related to struggling Jet Airways, including rising fares and flight cancellations.

 Prabhu has also asked Civil Aviation Secretary Pradeep Singh Kharola to take necessary steps to protect the rights and safety of passengers.  On Monday, lenders did not take a final decision on providing emergency funds to the cash-strapped carrier.

 The airline’s board is meeting in Mumbai on Tuesday.

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Published on April 16, 2019
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