Jet Airways India Ltd., one of the nation’s biggest airline by market value has deteriorated drastically and dramatically by a record 31 per cent on Thursday after it suspends its operations on a ‘temporary’ basis as it ran out of money in Mumbai.
Jet Airways is the second local carrier to ground its complete convoy in the past decade. It has been casting a shadow on India’s booming aviation sector.
India’s aviation sector is the world’s fastest-growing aviation market in the world with passenger growth growing with double digits percentage in a market of 54 consecutive months and yet its notoriously difficult to make money.
Parvez Damania, a Mumbai based aviation expert said, “It’s a terrible setback for the entire industry. This makes the whole aviation story look doubtful. Grounding of Jet Airways has impacted the credibility of double-digit growth of Indian civil aviation.”
Suitors will weigh the sector’s prospects against India’s high jet-fuel prices as Jet Airways’ lenders reach out to find an investor for the debt-ravaged airline.
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