With Jet Airways revival plan hitting yet another hurdle, the company’s share price has been hammered. The stock has tumbled 15 percent in three consecutive trading sessions, hitting the lower circuit on National Stock Exchange every day.
On November 23, too, the stock was sank to a new 52-week low of Rs 65.55, down 5 percent, at 9.30 am. It has crashed 30 percent in the month and is down 26 percent for the year so far.
A series of recent developments have hit the company's revival plan. As reported by Moneycontrol, the grounded carrier on November 14 temporarily cut the salaries of some of its staff by up to 50 percent and sent some on leave without pay. Sources told MOneycontrol that the changes would be effective December 1.
Adding to the woes, the airline’s new owner Jalan-Kalrock consortium told the National Company Law Appellate Tribunal (NCLAT) of its inability to pay additional funds to clear provident fund (PF) and gratuity dues of around Rs 250 crore.
On November 21, the Economic Times said that the frustrated lenders were forcing Jet Airways into liquidation as they were looking at selling 11 aircraft while the resolution process remained slow. Moneycontrol could not independently verify the report.
Another blow came on November 22 when the aviation security agency BCAS withdrew its accreditation to Jet Airways' aviation security training facilities.
“Upon the transfer of ownership of Jet Airways to the consortium, the security function will be reactivated and fresh approvals shall be sought for the new infrastructural set-up," the BCAS statement said.
In Q2FY23, the company’s net loss widened to Rs 308.24 crore compared to a loss of Rs 60.78 crore in the same quarter of the previous year. Total income plunged to Rs 13.52 crore from Rs 45.01 crore in the year-ago period.The once-storied airline shuttered operations in April 2019 after going bankrupt. In October 2020, the Jalan-Kalrock consortium won the bid for Jet Airways revival but nothing has fructified since.