Only sellers in Jet Airways for 3rd straight session: Here is why
Jet Airways, Jet Airways share price, Jalan-Kalrock Consortium, Jet Airways share lower circuit: The once-storied airline shuttered operations in April 2019 and JKC's resolution plan was approved under the insolvency process by the National Company Law Tribunal (NCLT) in June last year.
Jet Airways, Jet Airways share price, Jalan-Kalrock Consortium, Jet Airways share lower circuit: Jet Airways share price has hit a lower circuit of 5 per cent for the third straight session Wednesday to touch a new 52-week low of Rs 65.95 per share on the BSE. The counter in the last three sessions has declined around 15 per cent amid uncertainty over the resumption of its operations.
The Jalan-Kalrock Consortium (JKC), which had won the bid to recover the troubled airline, earlier last week said that it might take ‘difficult’ near-term decisions to manage cashflows, according to a news agency PTI report.
While citing the measures to manage cashflows, the new owner of Jet Airways has decided to reduce salaries for various staff and send many employees on leave without pay. It has around 250 staff.
The pay cut would be up to 50 per cent and the quantum would be higher for the CEO and CFO. The temporary pay cuts and Leave Without Pay (LWP) for the affected staff would be effective from December 1, 2022, a PTI source close to the development said.
The once-storied airline shuttered operations in April 2019 and JKC's resolution plan was approved under the insolvency process by the National Company Law Tribunal (NCLT) in June last year. However, due to various issues, the airline is yet to restart operations.
As per JM Financial, “India’s Aviation industry is likely being consolidated towards two large players – Indigo 58% and Tata Group 24% – as smaller competitors are struggling with cost over-runs and liquidity challenges, while new entrants will require some time to build a commendable fleet size.”
Besides, the ATF (Air Turbine Fuel) prices continue to remain at high levels despite the recent correction, which will have an adverse impact on profitability, the brokerage further added.
The share price of Jet Airways has corrected nearly 48 per cent in the last six months, while it has slumped over 30 per cent in the last one month. The company had expected to resume operations in September of this fiscal, however, it seems the new owners may take more time to take off.
With PTI Inputs
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