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Jet Airways falls 4% as 15 more planes grounded

Shares of Jet Airways fell almost 4 per cent today as the struggling carrier said it has grounded 15 more planes due to non-payment of lease rentals, resulting in a massive decline in its active fleet.


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Jet Airways falls 4% as 15 more planes grounded
Jet Airways fell 4 per cent after grounding 15 more planes.

Shares of Jet Airways fell almost 4 per cent today as the struggling carrier said it has grounded 15 more planes due to non-payment of lease rentals, resulting in a massive decline in its active fleet.

After opening at Rs. 257.80, 7 points or 2.68 per cent lower against the yesterday's close of Rs. 264.90, Jet Airways share price touched an intraday low of Rs 254.55, 3.91 per cent down on BSE. On NSE, it touched days' low at Rs. 254.40, 4 per cent lower than the previous close of Rs. 265.

At 12:05 pm, the stock was trading at Rs. 256.90, down 8 points on BSE and Rs. 257.35, down 7.5 ponits on NSE. The stock has been falling consecutively for the last 3 days at the rate of 4.33 per cent.

The stock has been delivering negative returns at the rate of 57 per cent over one year, 25 per cent over nine months, 2.5 per cent in three weeks and 5.17 per cent in one week on both the trading platforms. It is trading lower than 5, 100 and 200-day moving average.

The company has informed the exchanges about grounding another fifteen aircraft due to non-payment of amounts outstanding to lessors under their respective lease agreements. With 15 more planes out of operations, its fleet has come down to just 20 from as high as 123, operating over 650 flights across the country and the continents.

The filing added, "Company is actively engaged with all its aircraft lessors and regularly provides them with updates on the efforts undertaken by the Company to improve its liquidity. Aircraft lessors have been supportive of the Company's efforts in this regard. The Company is also making all efforts to minimize disruption to its network due to the above and is proactively informing and re-accommodating its affected guests. The company also continues to provide required and periodic updates to the Directorate General of Civil Aviation in this regard."

"Less than 15 aircraft of Jet Airways are currently operational ," stated Civil Aviation Secretary Pradeep Singh Kharola on Wednesday, after yesterday's announcement of grounding 15 additional aircraft. As per the government official, the active aircraft fleet of Jet Airways was 28 yesterday.

(Edited by Rupa Burman Roy)

Also Read: Share Market Live: Sensex up 142 points; Nifty at 11,739, Indiabulls Hsg, HCL Tech, Tata Steel top gainers

Also Read: Crisis-hit Jet Airways grounds 15 more planes, taking total to 69

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