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Jet Airways shares fell by 5% amid massive flights cancellation

File photo of a Jet Airways aeroplane. Photograph:( Zee News Network )

PTI New Delhi, Delhi, India Mar 19, 2019, 03.42 PM (IST)

Shares of debt-ridden Jet Airways fell by five per cent Tuesday amid massive cancellation of flights by the airline due to the grounding of a large part of its fleet.

The shares of the company plunged 5 per cent to Rs 225.10 on the BSE.

On the NSE, shares declined 4.77 per cent to Rs 225.45.

Civil Aviation Minister Suresh Prabhu on Tuesday directed his ministry's secretary to hold an emergency meeting on Jet Airways massively cancelling flights after grounding of a large part of its fleet.

The minister's direction came in the wake of the airline drastically reducing its operations due to liquidity crunch.

"Directed Secretary, @MOCA GOI to hold an emergency meeting on the grounding of flights by Jet Airways, advance bookings, cancellations, refunds and safety issues, if any," Prabhu said in a tweet.

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Meanwhile, Jet Airways aircraft maintenance engineers' union wrote to aviation regulator Directorate General of Civil Aviation on Tuesday that three months of salary was overdue to them and flight safety "is at risk".

The airline on Monday said it had grounded four more planes, taking the number of aircraft that are non-operational due to non-payment of lease rentals to 41.

Meanwhile, India's government has asked state-run banks to rescue privately held Jet Airways without pushing it into bankruptcy, as Prime Minister Narendra Modi seeks to avert thousands of job losses weeks before a general election, two people within the administration told Reuters. 

Story highlights

Civil Aviation Minister Suresh Prabhu on Tuesday directed his ministry's secretary to hold an emergency meeting on Jet Airways massively cancelling flights after grounding of a large part of its fleet.