Jet Airways slips over 6% in two sessions

Jet Airways (India) fell 2.24% to Rs 348.60 at 12:11 IST on BSE, extending Tuesday's 3.98% fall triggered by media reports that the Supreme Court has sought Centre's response on the approval given to Jet-Etihad Airways deal.

Meanwhile, the BSE Sensex was up 91.57 points, or 0.46%, to 20,075.18.

On BSE, 1.55 lakh shares were traded in the counter compared with average volume of 5.22 lakh shares in the past one quarter.

The stock hit a high of Rs 354 and a low of Rs 345 so far during the day. The stock hit a 52-week high of Rs 688.60 on 25 April 2013. The stock hit a 52-week low of Rs 280 on 28 August 2013.

The stock fell 3.98% to Rs 356.60 on Tuesday, 8 October 2013. It has fallen 6.14% in two trading sessions from Rs 371.40 on Monday, 7 October 2013.

The stock had underperformed the market over the past one month till 8 October 2013, rising 1.87% compared with the Sensex's 3.70% rise. The scrip had also underperformed the market in past one quarter, falling 19.56% as against Sensex's 3.41% rise.

The mid-cap company has an equity capital of Rs 86.33 crore. Face value per share is Rs 10.

According to reports, the Supreme Court on Tuesday, 8 October 2013, sought response from the Centre on a petition filed by BJP leader Subramanian Swamy seeking a stay on the Jet-Etihad Airways deal. The apex court issued notices to the Centre, ministries and departments concerned, Jet Airways and UAE's Etihad Airways on the petition challenging the deal and sought their responses within four weeks, reports added.

The Cabinet Committee on Economic Affairs (CCEA) on 3 October 2013 cleared Jet Airways' proposed sale of 24% equity to Abu Dhabi-based Etihad, days after the Rs 2058 crore deal got regulatory clearances. The proposal was of Etihad to subscribe 2.72 crore Jet Airways shares of Rs 10 each, amounting to 24% of post-issue paid-up equity share capital for Rs 2057.66 crore.

Through his public interest litigation (PIL), Swamy sought the quashing of the Jet-Etihad Airways deal, the first foreign direct investment in the aviation sector since the government eased rules in September 2012. Swamy has also sought an investigation into the bilateral seat-sharing agreement signed between India and the UAE.

In September 2013, the Union Cabinet cleared the exchange of the bilateral air services agreement (ASA) between India and Abu Dhabi. The ASA will see the number of seats that airlines from India and Abu Dhabi can operate to either destination jump to 50,000 a week from the current level of about 13,000 seats a week.

Reports suggested that during the brief hearing on Tuesday, Swamy submitted that the Jet-Etihad deal was against public interest as there has been squandering of natural resource i.e. the sky and air space. He claimed that the deal was cleared against the advice of the Parliament Select Committee and other advisory bodies. Swamy also submitted that even the CAG has found that there has been reckless allocation of air space to foreign airlines.

The nine respondents to whom notices have been issued are the Centre, the Ministry of Finance, the Ministry of Commerce, the Ministry of External Affairs, Foreign Investment Promotion Board (FIPB), Department of Industrial Policy and Promotion, Directorate General of Civil Aviation (DGCA), Jet Airways and and Etihad Airways.

Jet Airways (India) reported a net loss of Rs 355.38 crore in Q1 June 2013 compared with a net profit of Rs 24.70 crore in Q1 June 2012. Revenues fell 12.34% to Rs 4064.40 crore in Q1 June 2013 over Q1 June 2012.

Jet Airways connects 20 international destinations and operates flights to and from 51 destinations in India.

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