Hindustantimes wants to start sending you push notifications. Click allow to subscribe

Jet Airways shares drop as crisis deepens

Reuters | ByReuters
Mar 20, 2019 11:40 AM IST

The government has asked state-run banks to rescue the airline without pushing it into bankruptcy, two people within the administration told Reuters.

Shares of Jet Airways Ltd dropped about 7 percent on Wednesday as the company’s distress aggravated after the government called for an emergency meeting to discuss the cash-strapped carrier’s woes.

The government has asked state-run banks to rescue the airline without pushing it into bankruptcy, two people within the administration told Reuters.

Hindustan Times - your fastest source for breaking news! Read now.

State-run banks have been urged to convert debt into equity and take a stake in Jet in a rare move to use taxpayer money to save a struggling private-sector company from bankruptcy. The two people and another source, however, said this would be “transitory” and lenders could sell the stakes once Jet revives itself.

The 25-year-old airline defaulted on loans after racking up over $1 billion in debt, and owes money to banks, suppliers, pilots and lessors - some of whom have started terminating their lease deals with the carrier.

Jet now operates only 41 aircraft, aviation regulator Directorate General of Civil Aviation has said. Several passengers have been affected due to the grounding of Jet flights.

Mounting troubles dented the stock, with shares falling as much as 6.9 percent to 213.35 rupees, in their biggest daily percentage fall in over a month.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Start 14 Days Free Trial Subscribe Now
OPEN APP