The shares of Jet Airways on Friday plunged 5.7 percent in the early trade amid media reports of the airline facing a cash crunch.
The shares of Jet Airways on Friday plunged 5.7 percent in the early trade amid media reports of the airline facing a cash crunch. The shares dipped to as low as Rs 312.15 today after closing at Rs 331.20 yesterday. Jet Airways will be unable to fly beyond 60 days unless cost-cutting measures are in place, ET reported citing unidentified sources. The management team, including Chairman Naresh Goyal has also approached investment bankers again to help sell a stake, the report added. Out of the six brokerages covering the stock, three have “buy” and above, 1 has “hold” and 1 has “sell”call on the stock, Reuters data showed. The stock is down 60.2 percent this year as of last close.
The shares of Jet Airways recovered slightly and were trading at 317.50 down 4.14 percent at the time of reporting. There were various reports in the media earlier this week that the airline asked its employees to take a pay cut of up to 25 percent due to rising costs.
Earlier, PTI quoted its sources 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 told PTI here.
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.