Jet Airways shares hit upper circuit for 2nd session in row after airline announces to resume operations
For the second straight session, the shares of grounded Jet Airways were locked at an upper circuit of 5 per cent to Rs 87.65 per share on the BSE, as the aviation company is all set to start its domestic operations from the first quarter of 2022.
The stock in the last two sessions have jumped over 10 per cent, while it has breached Rs 85 per share levels in the last one month. The stock earlier this year on January 11, 2021 has hit its 52-week high of Rs 165 per share.
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“The process of reviving the grounded carrier is on track with the existing Air Operator Certificate (AOC) already under process for revalidation”, Zee Business Reporter Daanish Anand said.
He added, Captain Sudhir Gaur will be the acting chief executive officer (CEO) of the company, and Jet Airways 2.0 aims at restarting domestic operations by Q1-2022, and short haul international operations by mostly Q3/Q4 2022.
Founded in 1993, Jet Airways operations have been suspended since April 2019 due to heavy debt. However, earlier in June, the National Company Law Tribunal (NCLT) approved the Kalrock-Jalan consortium plan for the revival of airline with riders.
A bench led by Janab Mohhamed Ajmal and V Nallasenapathy accepted the resolution plan but also stated that slots allocation will be considered, and historic slots will not be available. It has given 90 days to the aviation regulator to decide on slots for Jet Airways.
The Kalrock-Jalan consortium won the bid in October 2020 to restart the airline by proposing a nearly Rs 1,200 crore payout to its creditors.
Jet Airways had a significant market share in both the domestic and international front before grounding, and the consortium expects to bring Jet Airways back in the skies by next year.
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