Five Reasons Why Jet Airways Stock is Down over 20% Today
Around 1,000 Jet Airways employees staged a protest rally on Wednesday and submitted a written complaint to the police against the airline management over the non-payment of salaries. The police is yet to register an FIR.
Jet Airways (India) Ltd shares dived over 20% on Thursday to hit an intra-day low of Rs 118.90. The stock has been in news for all the wrong reasons since the time the airline suspended operations on 17 April after it did not receive a loan of about Rs1,500 crore as part of a rescue deal with government-owned lenders.
Here are the five developments that have adversely affected the stock price movement of Jet Airways today:
1. Bidders for Jet Airways are not keenly following up on their expressions of interest (EoI), according to some media reports. With just 10 days to go for final submission of bids, three of the four qualified bidders—Etihad Airways, TPG Capital and Indigo Partners—have not even signed non-disclosure agreements, a must for conducting due diligence.
2. According to another report, the registrar of companies (RoC) in Mumbai will report to the government within a month whether the Jet Airways promoters need to be investigated for any fund diversion. The RoC has decided to speed up its ongoing inspection of Jet Airways’ books, which was initiated last August after the company deferred its first quarter FY19 results the same month.
3. Jet Airways is also likely to be asked soon to vacate the office space occupied by the airline at the terminals of all the airports operating under the Airports Authority of India (AAI), according to a media report. AAI, which manages around 125 airports in the country, is learnt to have asked all its airports to get the space vacated as soon as possible and submit progress reports on the same by 2 May.
4. The Delhi high court on Wednesday had issued a notice to Jet Airways seeking a full refund of airfare to passengers affected by the suspension of Jet Airways operations. The next hearing on the matter has been scheduled on 16 July.
5. Around 1,000 Jet Airways employees staged a protest rally on Wednesday and submitted a written complaint to the police against the airline management over the non-payment of salaries. The police is yet to register an FIR.
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