Jet Airways heads to a free fall
The debt-ridden airline operator issued a press release announcing the temporary suspension of flight operations on Wednesday night. The stock of Jet Airways dipped 27 per cent in the morning session on Thursday.
The stock's lower circuit limit is placed at 35 per cent, Rs. 157.25 per share. On Thursday, at 9:48 hours, the stock of Jet Airways was trading at Rs. 174.65 per share, down Rs. 67.20 or 27.79 per cent on BSE.
In a release issued in on Wednesday night, the airline informed that all its domestic and international flights are cancelled for lack of funds to pay for fuel and other critical services. The release stated that the consortium of Indian lenders led by State Bank of India (SBI) was unable to consider Jet Airways' request for interim funding to sustain operations. As no emergency funding was available from any source the airline shut down its operations flying its last flight on Wednesday, April 17, 2019.
The company apologised to its customers for the cancellation of services due to temporary suspension of operations and thanked them for their patronage over the years.
Meanwhile, the lenders are processing the Expressions of Interest (EOI) received from potential stake buyers and the bid process will conclude on May 10, 2019, said the release.