Jet scrip ends 5% lower after further grounding

Source :IANS
Author :IANS
Last Updated: Thu, Apr 4th, 2019, 16:15:03hrs
Jet scrip ends 5% lower after further grounding
Mumbai: The stocks of Jet Airways fell over 5 per cent on Wednesday to Rs 251.10 per share after the company said that it has grounded 15 more aircraft.

In the intra-day trade, the financially challenged airline's scrip fell over 6 per cent.

The stock movement came a day after Jet in a BSE filing said that an "additional 15 aircraft have been grounded due to non-payment of amounts outstanding to lessors under their respective lease agreements."

India's civil aviation regulator, the Directorate General of Civil Aviation (DGCA), said on Wednesday that Jet Airways operated 28 aircraft.

The clarification came after several media reports cited that the airline was operating 15 or less aircraft, which would have made it ineligible to operate international flights.

"As informed to the regulator (DGCA), the airline is operating a curtailed schedule with sufficient number of aircraft, and is compliant with the applicable guidelines," Jet Airways said in a statement.

The confusion regarding Jet's operational fleet arose after the airline on Tuesday informed the stock exchanges that it has grounded 15 more aircraft due to non-payment to lessors.

"Jet Airways continues to fly 28 aircraft as on date. The 15 aircraft reported has already been accounted for and was only informed to the stock exchange by Jet Airways yesterday," the DGCA said.

Industry sources said that banks are expected to infuse the first tranche of Rs 1,500 crore into the cash-strapped airline within one or two days, which is expected to ease the current situation.