Jet Airways’ shares crashed this morning amid reports that its board has proposed a total operational shutdown.
The embattled airline’s share price dropped 12 per cent to 230.45 rupees after The Economic Times reported that its management has mooted ceasing operations entirely, recovering from an initial 18 per cent drop.
Jet failed to secure emergency funding yesterday, forcing it to extend a flight suspension into Thursday.
It was operating fewer than 10 planes yesterday and has just seven in circulation today, The Economic Times said, paying fuel suppliers on a day-by-day basis.
Saddled with more than £900m in debt, Jet Airways has almost no liquidity, meaning it cannot pay wages or even make loan payments to creditors.
Meanwhile three firms believed to represent founder Naresh Goyal have reportedly withdrawn from bidding process for the airline after other bidders threatened to walk away.
Etihad Airways and TPG Capital did not want Goyal as part of any rescue deal, the Economic Times said.
Goyal left the firm in late March after talks broke down with Etihad, which holds a 24 per cent stake in Jet.
Pilots and other staff urged Indian Prime Minister Narendra Modi to intervene yesterday in a protest outside the company’s headquarters.
One pilot told the BBC: “We haven’t been paid for the last four months. It’s been a really difficult period. Many people here are the sole breadwinners for their families. We’re hoping the lenders would agree to give money to keep the airline going.”
Chief executive Vinay Dube said yesterday that management was set to choose a path forward this morning after guidance from the board.