Skip to content 
Search

Latest Stories

Jet Airways shares plunge over 32 per cent after it halts all operations

JET AIRWAYS shares plunged more than 32 per cent today (18), hours after the Indian carrier's final flight landed following a decision to ground its entire fleet.

The Mumbai-based carrier is on the edge of bankruptcy and has failed to secure emergency funding from banks, forcing it to suspend all operations late Wednesday (17).


Jet's stock fell more than 32 per cent to Rs 162.15 on the Bombay Stock Exchange on Thursday (18).

It was worth more than four times that a year ago.

The lenders that control the airline said Thursday (18) they were focusing on finding a buyer for Jet, which was until recently India's second-biggest carrier by market share.

"Lenders are reasonably hopeful that the bid process is likely to be successful in determining fair value of the enterprise in a transparent manner," they said in a statement.

The State Bank of India-led consortium is looking to sell a controlling stake in Jet and has shortlisted four potential buyers, including Etihad Airways, which already owns 24 per cent.

The four have until May 10 to submit formal bids.

But until then, the carrier's remaining fleet is grounded, with a final flight from Amritsar to Mumbai landing in the early hours of Thursday (18).

A collapse of Jet, and the loss of more than 20,000 jobs, would deal a blow to prime minister Narendra Modi's pro-business reputation as he seeks a second term in ongoing national elections.

The chairman of state-carrier Air India, which has been bailed out by the government several times, said Jet's temporary closure was a setback for India's aviation sector.

"We have in the past witnessed many airlines shutting shop and it is time to appreciate that the razor thin margins which airlines are forced to operate with in a competitive environment results in a scenario that encourages unsustainability," Ashwani Lohani said in a Facebook post.

Jet, which has debts of more than $1 billion (£767.40 million), has been in a tailspin for months. It has defaulted on loans and failed to pay many staff since the start of the year.

The carrier cancelled hundreds of flights in recent weeks, stranding thousands of passengers. It was operating just five planes before yesterday’s (17) grounding, down from 120 last year.

Bad investments, competition from several low-cost carriers, high oil prices, and a weak rupee contributed to Jet's financial demise, experts say.

Its plight has been compared to that of Kingfisher Airlines, which ceased operations in 2012 before later going bust, causing thousands of job losses and huge financial costs to lenders.

(AFP)

More For You

Asian firm acquires Kings Court Hotel for £2.75m

UK-based Nanak Hotels acquired the 60-room Kings Court Hotel in Warwickshire for £2.75 million. (Photo: Colliers International UK)

Asian firm acquires Kings Court Hotel for £2.75m

UK-BASED Nanak Hotels recently acquired the 60-room Kings Court Hotel, a 17th-century property in Warwickshire, England, for £2.75 million. This is the first regional acquisition by the privately held firm led by British Indians Harpreet Singh Saluja and Karamvir Singh.

Nanak Hotels, which operates a UK property portfolio, plans to invest in the property's refurbishment and repositioning, according to a statement from Colliers International UK, which brokered the transaction.

Keep ReadingShow less
Priya Nair becomes first woman CEO in Hindustan Unilever's history

Priya Nair (Photo: Unilever)

Priya Nair becomes first woman CEO in Hindustan Unilever's history

PRIYA NAIR has been appointed as the CEO and managing director of Hindustan Unilever Ltd (HUL), effective from August 1. She will be the first woman to lead the company in its history.

The announcement was made by HUL on Thursday (10). Nair, who currently serves as president, Beauty & Wellbeing at Unilever, will take over the role from Rohit Jawa, who will step down on July 31 to pursue other interests.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London.
Getty Images

Economy shrinks again in May, hitting Labour’s growth plans

THE UK economy contracted unexpectedly in May, marking the second consecutive monthly decline, according to official data released on Friday. The figures present a challenge for the Labour government as it attempts to revive economic growth.

Gross domestic product fell by 0.1 per cent in May, following a 0.3 per cent contraction in April, the Office for National Statistics (ONS) said in a statement.

Keep ReadingShow less
SBI UK cuts mortgage rates

The bank's commitment to green lending reflects focus on sustainability (Photo: Getty Images)

SBI UK cuts mortgage rates

BANKING major State Bank of India (UK) has cut interest rates on its buy-to-let mortgage products to help landlords reduce borrowing costs.

The bank said the rate cuts would help landlords invest in rental properties and meet growing demand for rental homes across the UK.

Keep ReadingShow less