Jet Airways rubbishes report on its inability to fly beyond 60 days, denies stake sale plans

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Updated: August 3, 2018 4:00:52 PM

Denying reports of stake sale, Jet Airways on Friday issued a clarification saying it has no plans in place to divest stake.

Jet Airways has more than 16,000 employees.

Denying reports of stake sale, Jet Airways on Friday issued a clarification saying it has no such plans in place to divest stake, TV reports said citing the airline. Country’s second largest air carrier also termed the reports saying existing cash crunch situation doesn’t allow it to fly beyond 60 days as incorrect. However, the airline said that it has been in talks with stakeholders on challenges, TV reports said. Earlier there were reports that promoters including company chairman Naresh Goyal and family are planning to sell up to 20 percent of total 51 percent stake via fresh issue and secondary sale as the airline will be unable to fly beyond 60 days unless cost-cutting measures are put in place.

There were also reports that Jet Airways is working on an immediate turnaround plan to save cost to keep the airline afloat. As a result of these reports, Jet Airways shares plunged to as low as 9.05 percent today at Rs 301.25 after closing at Rs 331.20 yesterday.

There were also reports saying the full-service carrier is in discussions with certain sections of employees on the salary cut proposal, which has been mooted amid efforts to save costs.

Jet Airways has more than 16,000 employees. The Naresh Goyal-led airline, in which Gulf carrier Etihad holds 24 percent stake, has already slashed by 25 per cent the salaries of its senior management, one of the sources had told PTI earlier this week.

Senior management executives are those holding general manager post and above level positions. Jet Airways which completed 25 years of operations earlier this year  had 16,558 permanent employees as on March 31, 2018. Besides, there were a total of 6,306 temporary or casual employees, as per the airline’s annual report for 2017-18.

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