Jet Airways crashlands to 52-week low
One of country's largest airliner Jet Airways is flying on low fuel. It is going through dire financial crunch and may operate only for sixty days.
The recent media reports suggest that employees have been urged to go under pay cut to fund the regular operations of the company. Post the news, the stock slumped almost 9 per cent to hit 52-week low.
The rising fuel prices have put heavy pressure on the operational efficiency of the airline company. The country’s largest airliner Indigo saw severe drawdown in its bottomline due to the high fuel costs. In addition, the rising competition amongst domestic airline companies has made the prices too competitive to operate.
In a reply to media reports, Jet Airways clarified that the news was incorrect and malicious and also denied news of talks with stakeholders for stake sale in the company.
The stock closed at Rs 308, down by 7 per cent.