Shares of Jet Airways dived as deep as 30 per cent in morning trade on Thursday. The company has temporarily suspended all flights with no cash to run operations any further. While Jet had been running a bare minimum number of 35-40 flights for the last few days, a total grounding will significantly affect its value for potential investors that are undergoing a bidding process to invest in the airline.
There are fears of its licence being subsequently suspended if it does not get its flights back up. The announcement from the lenders came early morning ahead of market opening.
“The lenders after due deliberations decided that the best way forward for the survival of Jet Airways is to get the binding bids from potential investors who have expressed EOI (Expression of Interest) and have been issued bid documents on April 16,” a statement said.
The company was trading at 173.40 per share about 28 percent down at around 9:55 am.