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

Vehicles ply along a road adajacent to Jet aircraft parked at the airport in Mumbai. — AFP

Vehicles ply along a road adajacent to Jet aircraft parked at the airport in Mumbai. — AFP

Amid acute financial crunch crippling its operations, Jet Airways management is awaiting clarity on receiving fresh funds after which a decision would be taken on continuing operations.

Jet Airways is grappling with acute financial crunch and is operating less than 10 planes besides temporarily suspending worldwide operations.

The BSE has sought clarification from Jet Airways (India) Ltd with reference to news that it is likely to temporarily shut down its operations.

Sources in the know told India Today that the lenders are unlikely to extend any interim funding as of now - they want to weigh the seriousness of bids received for the recently-concluded stake sale before firming up any funding plans.

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

Civil Aviation Secretary Pradeep Singh Kharola said the authority reviewed airfare fluctuations in 40 high-density sectors in the country. The airline had hoped to receive some funds on Monday evening as that would have allowed for clearance of salaries and a possible increase in its operational fleet.

Dube, in a letter to employees late on Tuesday that was seen by Reuters, said Jet has stressed to its lenders the need for urgent funding, critical to the continuation of its operations. CNTC TV18 claims that Dube would have been authorised by the board to temporarily suspend all remaining flight operations later on April 16 if no funds arrive.

"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. More than two dozen Jet-operated planes have been de-registered this month, and Jet has been forced to ground dozens more over unpaid dues.

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