Jet Airways Shares Fall After Airline Announces Grounding Of Additional Planes

Jet Airways share fell as much as 4 per cent on Wednesday, after the debt-laden airline said it had grounded more aircraft. On the National Stock Exchange (NSE), Jet Airways shares declined to Rs 254.40 apiece, from the previous close of Rs 265.00. On the BSE, the stock shed as much as 3.91 per cent in intraday trade. In a regulatory filing post-market hours the previous day, the airline said it had grounded 15 planes as it failed to pay amounts outstanding to lessors under their respective lease agreements.

Jet Airways also said it is actively engaged with its aircraft lessors and regularly provides them with updates on the efforts undertaken to improve its liquidity. "Aircraft lessors have been supportive of the Company's efforts in this regard. The Company is also making all efforts to minimize disruption to its network due to the above and is proactively informing and re-accommodating its affected guests," the filing noted.

The latest groundings mean more than two-thirds of Jet Airways' total fleet of 119 planes is not flying.

The airline, which was on the brink of bankruptcy, was bailed out in March by state-run banks that will temporarily take a majority stake in the company and give it a new loan of $218 million.

After the bailout, Jet Airways told officials at the civil aviation ministry that the airline would not ground more planes and would fly 40 more aircraft by the end of April.

In its filing on Tuesday, Jet Airways said it continues to provide required and periodic updates to aviation regulator DGCA or the Directorate General of Civil Aviation. 

As of 11:47 am, Jet Airways shares traded 2.81 per cent lower at Rs 257.45 apiece on the BSE, underperforming the broader markets which traded 0.26 per cent higher.