Jet Airways (NSE: JETAIRWAYS) share price dives as management considers operations shutdown

JetBlue A320

Since the March 25 resolution to infuse Rs 1,500 crore into the airline is yet to fructify, the once leading airline has been defaulting on payments, forcing its lessors to retake nearly all its planes and was operating just about six planes as of Tuesday.

Jet Airways stock plunged as much as 18.56 per cent to Rs 213.20 in the afternoon trade on Tuesday after reports suggested the airline may shut down its operations temporarily.

"The company's leadership, in consultation with its Board of Directors, is engaged with lenders in connection with the said emergency funding request to arrest the further deterioration of its services and minimise inconvenience to its guests", the airline told exchanges.

Prabhu's fresh orders came a day after the cash-strapped airlines suspended all its worldwide flights till April 18.

Jet Airways urgently needs the previously agreed rescue capital injection of at least INR10 billion rupees (USD144 million) to resume operations on a larger scale.

With the delay in fund infusion, Jet's operations have been shrinking.

On April 15, lenders did not take a final decision on providing emergency funds to the cash-strapped carrier. Sources have informed the board that operations will be unsustainable.

"Directed Secretary @MoCA_GoI to review issues related to Jet Airways, especially increasing fares, flight cancellations etc", Prabhu said in a tweet.

The board of the full service carrier, which is now operating less than 10 aircraft, is meeting in Mumbai on April 16.

"The company continues to work proactively with the Indian lenders to provide all the support which may be required, to help us resurrect Jet Airways, including working closely with the potential parties that are keen on bidding for the airline", Dube added.

Once de-registered, lessors are free to take a plane out of the country and lease it to other airlines.

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