Jet plunges over 13%, hits all-time low

NEW DELHI: Shares of Jet Airways tanked over 13 per cent to hit an all time low of Rs 79.65 in Friday's session after reports that DGCA has cancelled critical authorisations to Jet Airways’ engineering department.

ET reported, quoting sources, that India’s aviation regulator has cancelled critical authorisations to Jet Airways’ engineering department, rendering the grounded airline defunct and unable to carry out any maintenance work on aircraft.

The action taken by the Directorate General of Civil Aviation (DGCA) will impact the airline’s most critical assets, its planes, which are in constant need of maintenance and preservation even as they are grounded.

Experts said the development left very little value for Jet Airways’ flying permit.

The DGCA’s action also bars the airline from doing any third-party aircraft maintenance work for other airlines.

Meanwhile, the National Company Law Tribunal (NCLT) Thursday adjourned the hearing on Jet Airways insolvency case to June 20.

The tribunal asked the two creditors, Shaman Wheels and Gaggar Enterprises, who have taken Jet Airways to NCLT, to again serve legal notices to the grounded airline.

Shares of Jet Airways closed 10.77 per cent down at Rs 82.05 on BSE.