Is it the end of the road for Jet Airways?

Lenders of the debt-ridden airline operator are finding it difficult to strike a deal for the assets of Jet Airways even as it was confirmed that the airline is now operating only five aircraft. Let us have a quick look at where things are for Jet Airways as of today.

The latest update that we hear about Jet Airways is that the airline is seeking Rs. 400 crore emerging funds from banks to sustain its operations, which is now curtailed to just five aircraft after lessors took possession of most of the airline's fleet for failing to pay their dues. According to experts, Jet Airways might have to suspend operations for a while if it fails to secure funds immediately.

All this is happening even as the Committee of Lenders led by India's leading national bank SBI is negotiating a stake sale with probable buyers. Although as of now, there seems to be no lack of interest for Jet Airway's assets, the lenders are finding it difficult to restructure or pass on the debt to the prospective buyer. After the elimination of Naresh Goyal from the bidding process, following the objections raised by other bidders, the frontrunners for a controlling stake in Jet Airways are Etihad Airways, Indigo Partners, TPG Capital and India's first sovereign fund National Investment and Infrastructure Fund.

Despite all the efforts of lenders who have now taken over the management of the airlines, uncertainty looms over the future of the airline, its employees, lenders and shareholders. Factoring these sentiments, the stock of Jet Airways experienced huge volatility in Tuesday's trade to close at Rs. 241.85 per share, down by Rs. 19.95 or 7.62 per cent. The stock has lost more than 60 per cent in the one-year period.