Jet Airways stock zooms 5% after NCLT decision

Shares of grounded airline Jet Airways on Friday rallied 5% after the National Company Law Tribunal (NCLT) gave Jalan-Kalrock Consortium (JKC) six more months to make payment and take effective control of the airline.

Following the news, the stock hit its 5% upper circuit limit at Rs 73.90.

NCLT had set November 16, 2022, as an effective date for the company to pay dues to various creditors. In October 2020, the airline's committee of creditors (CoC) approved the revival plan submitted by the consortium of Dubai-based Murari Lal Jalan and the UK's Kalrock Capital.

After the insolvency resolution process in June 2021, JKC was declared the winning bidder for Jet Airways.

The airline's air operator certificate was revalidated by aviation safety regulator DGCA in May this year following which it announced its plans to recommence operations in September 2022 but later pushed the relaunch date further.

The airline has not flown since April 2019 when it ceased all operations due to financial distress.

In late December, amid uncertainties around the recommencement of commercial operations, at least two key senior-level executives besides some pilots and cabin crew left the airline.

Till the airline's ownership is transferred to the consortium by the lenders, the company had recently said Sanjiv Kapoor remains the CEO-designate.

In the September quarter of the ongoing financial year, the airline had reported a standalone net loss of Rs 308.24 crore. The airline had reported a net loss of Rs 305.76 crore in the same period a year ago.

In the second quarter of the current fiscal, Jet Airways saw its total income plunge to Rs 13.52 crore from Rs 45.01 crore in the year-ago period. Total expenses also jumped to Rs 321.76 crore in Q2.

Shares of the airline have lost over 16% in the last one year and in the last five years, the stock is down over 90%.

(With inputs from agencies)