Jet Airways share price falls after four more aircraft grounded due to non-payment of dues

The Jet Airways share price fell in early trade today on reports that the ailing carrier had grounded four more aircraft, taking the number to 32 which is more than a fourth of its fleet. Jet Airways share price fell up to 3.64% to 236.70 compared to the previous close of 245.65 on BSE. Jet Airways share price has been falling for the last two days and fallen 3.49% during the period.

Jet Airways share price has lost 13.74 % since the beginning of this year and fallen 65.75% during the last one year. Jet Airways share price was trading below its 50-day and 200-day moving average of 238.20 and 249.32 levels, respectively.

Jet Airways share price rose on Tuesday amid reports that Etihad Airlines and a new partner will jointly invest nearly Rs 3,800 crore to revive the ailing private carrier.

Jet Airways share price rises nearly 3% on reports of Rs 3,800-crore fund infusion into ailing carrier

Till date, 32 Jet aircraft have been grounded due to non-payment of lease rentals. On February 14, Jet Airways' board had approved a Bank-Led Provisional Resolution Plan (BLPRP), whereby lenders would become the largest shareholders in the airline. Its shareholders also approved conversion of loan into shares and other proposals during the extraordinary general meeting on February 21.

The BLRP by lenders estimated a funding gap of Rs 8,500 crore (including proposed repayment of aircraft debt of Rs 1,700 crore) to be met by appropriate mix of equity infusion, debt restructuring, sale and lease back of aircraft, among other things.

Shareholders of Jet Airways had approved conversion of loan into shares and other proposals during the extraordinary general meeting (EGM) on February 21. As on September 30, 2018, Jet Airways had gross debt of Rs 8,411 crore (including terms loans from banks and dues to lessors for aircraft lease), as against Rs 8,403 crore as on March 31, 2018.

The company has large repayments of Rs 1,700 crore due over December 2018 to March 2019, Rs 2,444.5 crore in FY2020 and Rs 2,167.9 crore in FY2021. Jet defaulted in servicing its loan obligations on December 31 2018 and the 90-day window before its loans are dubbed non-performing assets (NPA) ends on 31 March 2019.

The company is reeling under losses for the last four consecutive quarters with its shares losing over 60% in one year.

Meanwhile, the Sensex was trading marginally higher in trade today. Sensex rose 44 points to 37,580 and Nifty was flat at 11,298 level.

Edited by Aseem Thapliyal