Jet Airways Ltd. was a day late and a dollar short in striking a negotiation with Hinduja Group and Etihad Airways. The debt-ridden airline was forced to terminate the flight operations since 17th April’19 due to the shortage of funds.
Abu Dhabi – based Etihad Airways, which owns 24% stake in a Jet, pulled back its plan to add more investments in cash-strapped Jet airways. Furthermore, family-run, Hinduja Group decided to reconsider their deal of buying the stake in the airlines and has taken a back seat. The promoters of both the conglomerates are being cautious and re-evaluating their negotiations.
Jet Airways is under stringent investigation by the government due to the insolvency plea filed by two operational creditors Shaman Wheels Pvt. Ltd and Gaggar Enterprises Pvt. Ltd on 10th June’19.
On 11th June’19, cash-strapped, Jet Airways slumped 14.8% to an all-time low of Rs. 106.3. The stock was hammered by 69% in one year as of 10th June’19 closing price.
At 3:00 pm, the stock was trading down at 10.89% at Rs, 112.90 on BSE. While on NSE the price was at Rs.111.90, down 11.53%. Moreover, the stock hit 52 – week low during the morning trade.
Will this be the end of the runway for Jet Airways?