Jet stocks shoot-up amidst reports of rescue deal with Etihad

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SME Times News Bureau | 15 Jan, 2019
Troubled Jet Airways' scrip shot up by more than 16 per cent on Monday amidst reports that a rescue deal has been sealed between the cash-strapped airline and its partner, Etihad Airways.

At present, UAE's Etihad Airways has a 24 per cent stake in the beleaguered Jet Airways.

On the BSE, the airline's stock shot-up by 16.13 per cent or Rs 40.90 to Rs 294.40 a piece from its previous close of Rs 253.50. The scrip touched an intra-day high of 17.1 per cent on Monday.

Accordingly, the scrip rose as investors eyed a rescue deal being finalised between Jet and Etihad.

It is speculated that the deal will allow Etihad to increase its stake in the airline from the current 24 per cent to 49 per cent. On the flip side, Jet's founder Chairman Naresh Goyal's stake will come down.

Currently, the airline faces financial troubles due to high jet fuel prices, a weak rupee and low fares.

The airline had earlier said that it has so far not been able to secure sustainable financing to navigate through current headwinds and is in "active discussions" with various investors.

On November 16, Tata Sons, the holding company of the Tata Group firms, said that discussions on acquiring a stake in the financially-troubled airline were at a preliminary stage and that no such proposal has been made so far.