Jet Airways takes off!

Jet Airways had ended the day yesterday as the top gainer and today morning too, it remains the top gainer on the BSE. The stock price surged almost 9% to Rs.276.90; some bit of profit booking came in and it is now at Rs.268 levels, nevertheless, over 5.5% up.

The market is happy because they now see the airlines getting a new lease of life. Nares Goyal ad his wife have quit from the Board and as a part of the resolution plan, the lenders will now take over. Kevin Knight, the lone nominee of Etihad Airways PJSC, also resigned from the board.

With the banks taking control, buying 50.1% stake at Re.1/share. Post this, currently, Goyal’s stake stands reduced at 25.5% and that of Etihad at 12%.

As an immediate step towards resolution, they will infuse Rs.1500 crore which will be used to pay off lessors, vendors, creditors and employees.

Jet also plans to get back 75% of its grounded fleet back up in the air over the next 3-4 weeks. Jet has a fleet of 120 planes of which currently 54 stay grounded.