Jet Airways to Get Tata Group's Helping Hand, May Merge With Vistara, Stock Jumps 25% on Revival Hopes
The airline posted its third quarterly loss Rs 1,297.5 crore in July-September 2018 against a profit of Rs 49.6 crore in the same quarter of the previous fiscal.
Mumbai, November 15: The Jet Airways stock has surged 25 percent to Rs 320.95 on the news that the airline could merge with Tata SIA Airlines Ltd - the joint venture between Tatas and Singapore Airlines that is also known by the brand name Vistara. According to an Economic Times report, it will take place through a share swap in the first phase, and there are reports that in the second phase, there could be stake sale. Jet Airways Crisis: Airline Posts Rs 1,300 Crore Loss in Q3, Plans to Cut Flights in Less Profitable Routes as Revival Strategy.
Earlier this week, there were reports that Tata Group had already started its due diligence process in order to pick up a controlling stake in Jet Airways. The airline posted its third quarterly loss Rs 1,297.5 crore in July-September 2018 against a profit of Rs 49.6 crore in the same quarter of the previous fiscal. In the first six months of this fiscal, Jet has lost about Rs 14.4 crore a day.
The airline is in the middle of a severe financial crisis for the last few months, and has not been able to pay the salaries of their employees on time. There were reports that the pilots who resigned were relieved from their duties, without making them serve their notice period.
(The above story first appeared on LatestLY on Nov 15, 2018 04:31 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).