Jet Airways' scrip down 5% as four aircraft grounded

Financially stressed Jet Airways' stocks fell by around 5 per cent on Friday a day after the airline said that four of its aircraft have been grounded for non-payment of dues to lessors.

The company's scrip at the BSE on Friday fell by 4.78 per cent or Rs 11.30 to Rs 225.30 from its previous close.

In another development, the company in a separate regulatory filing said that its Board will meet on February 14, 2019 to approve the unaudited financial statements for the third quarter and nine months ended 31 December 2018.

On the issue of grounding of aircraft, the airline on Thursday said that it is actively engaged with all its aircraft lessors and "regularly provides them with updates on efforts undertaken by the company to improve its liquidity".

"The company is making all efforts to minimise disruption to its network...and is proactively informing and re-accommodating its affected guests," it said in the filing on Thursday.

"The company also continues to provide required and periodic updates to the Directorate General of Civil Aviation in this regard."

The airline on Thursday also said that three aircraft that were grounded for engine normalisation are back in commercial operations.

Lately, Jet Airways has been in a tight spot financially as a rescue plan is being stitched between its partner Etihad and a consortium of banks.

The airline has a loan burden of over Rs 8,000 crore and it could see some of that amount being converted into equity by the banks.

Last month in a filing, Jet Airways said an Extraordinary General Meeting (EGM) of the company would be held on February 21 where a special resolution would be put forth to consider and "approve conversion of loan into shares or convertible instruments or other securities".

The question about the financial health of Jet Airways has also been raised in the Lok Sabha.

Replying to a question on the airline, Minister of State for Civil Aviation Jayant Sinha in a written reply informed the Parliament that efficient operations and financial performance is the responsibility of each airline and their shareholders.

--IANS

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