Jet Airways: proposal to suspend all operations
Block to intercontinental flights extended to Thursday
The management of Jet Airways during yesterday's board meeting -according to "ET Now"- proposed to suspend all operations of the air carrier until a buyer is found for the majority of the shares. Furthermore, the former president Naresh Goyal would not have presented an offer to the State Bank of India (SBI) pulling himself definitively out of any possible initiative in the future, in a decision that could be read as conciliatory towards Etihad Airways and the Tata Group from when both of them had tied their purchase offer to Goyal's final exit.
What happened in the board of directors last night, however, had heavy repercussions on the stock market, where the Jet Airways stock plummeted reaching a peak of -18.53% and then rose and settled around a loss of 9%. Net decrease in the value of the shares which is also linked to the fact that all intercontinental connections will be cancelled up to Thursday, when the credit institutions will make known if they will issue a loan to guarantee the operations of the airline. Without a new injection of funds for Jet Airways, the entire fleet could be grounded and bankruptcy proceedings could start.
AVIONEWS - World Aeronautical Press Agency