Jet Airways plunges 10% on proposed complete suspension of operations

NEW DELHI: Shares of Jet Airways tanked 10 per cent in Tuesday’s trade amid reports the management of the troubled company has proposed a complete suspension of operations, as there is no financial assistance is in sight from the airline’s lenders.

At 1.13 pm, the scrip was trading 10 per cent lower at Rs 235.75.

ET on Tuesday reported that some of the Jet lenders have demanded more pledged shares of founder Naresh Goyal and planes owned by the airline as collateral for advancing further loans, even as the banks’ consortium remains sharply divided on additional debt assistance to Jet.

Three companies representing Jet Airways’ founder Naresh Goyal is said to have withdrawn from the bidding process for the troubled airline. It is believed that Etihad Airways and TPG Capital had threatened to walk out of the deal if Goyal was part of it.

Jet is operating seven planes and paying fuel companies on a daily basis to operate flights.


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