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Jet Airways' Shares Tank Ahead of Board Meeting, Aviation Minister Calls for Review of Issues

Jet Airways' Shares Tank Ahead of Board Meeting, Aviation Minister Calls for Review of Issues

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

New Delhi: The shares of Jet Airways slumped over 3 per cent in morning trade on bourses Tuesday, ahead of the meeting where the management will seek guidance from the board on the next steps forward for the airline.

Shares of Jet Airways opened on a weak note at Rs 254.50, then lost further ground and touched a low of Rs 252 on BSE, down 3.74 per cent over its last close.

Similar movement was seen on NSE, where the stock opened at Rs 255, then fell to a low of Rs 252.10, down 3.66 per cent over its previous closing price.

Jet Airways is grappling with acute financial crunch and is operating less than 10 planes besides temporarily suspending international operations. Its chief executive Vinay Dube, in an internal communication, had said the lenders could not decide on the emergency funding and that the board of the airline will meet Tuesday to take a call on the future.

"As you are aware, we have been working with the lenders to secure interim funding for our operations. The interim funding has not been forthcoming thus far, and as a result we have extended cancellation of international operations until April 18.

"The current status of our engagement with the lenders and other related matters shall be placed before the board tomorrow (Tuesday) morning, where the management will seek guidance from the board on the next steps forward. We will keep you updated on all critical developments," Dube said in a mail.

Meanwhile, civil Aviation Minister Suresh Prabhu has called for a review of issues related to struggling Jet Airways, including rising fares and flight cancellations. Prabhu has also asked Civil Aviation Secretary Pradeep Singh Kharola to take necessary steps to protect the rights and safety of passengers.

"Directed Secretary @MoCA_GoI to review issues related to Jet Airways, especially increasing fares, flight cancellations etc," Prabhu said in a tweet.

Besides asking the secretary to take necessary steps to protect passenger rights and safety, Prabhu has called for working with all stakeholders for their well-being.

Jet Airways pilots' union, the National Aviators Guild had Sunday deferred a decision to strike from Monday saying that it wanted to give more time to the airline ahead of the lenders' meeting here.

(With inputs from PTI)

first published:April 16, 2019, 12:43 IST