Aviation stocks are the theme for the Indian equity markets on Thursday, especially after Jet Airways
, which plunged 27%, on temporarily adjourning its operation due to lack of funds.
The fall in Jet Airway provides strength to wings of SpiceJet
, which gained 8% and 2%, respectively.
On Wednesday, Jet flew its last scheduled flight S2 3502 from Amritsar to Mumbai at 10:20 PM, IST as the debt ridden company decided to suspend its operations
on a temporary basis with no cash to run operations any further.
The development comes after lenders led by State Bank of India decided to reject the plea for emergency funds.
“Since no emergency funding from the lenders or any other source is forthcoming, the airline will not be able to pay for fuel or other critical services to keep the operations going. Consequently, with immediate effect, Jet Airways is compelled to cancel all its international and domestic flights. The last flight will operate today,” the company said in a press note released on Wednesday.
Interestingly, the development brings cheers to SpiceJet and Indigo with Spice announcing the addition of six more Boing 737-800 NG aircraft on dry lease.
"These six aircrafts are in addition to the 16 B737s and 5 Q400s that the airline will soon induct. The total number of planes to be inducted in the immediate future now stands at 27. The airline has applied to the Directorate General of Civil Aviation for a No Objection Certificate (NOC) to import the planes. Subject to regulatory approvals the aircraft would begin joining SpiceJet’s fleet in the next ten days," the company said in a press note to the exchanges released on Thursday.
Jet Airways (India) Ltd's share price is currently at Rs175.80, down by Rs66.05 or 27.31%, from its previous close of Rs241.85 on the BSE. The scrip opened at Rs217.70 and has touched a high and low of Rs217.70 and Rs168.60, respectively. So far, 2,24,89,378 (NSE+BSE) shares have been traded on the counter. The current market cap of the company is Rs2,747.42cr.
SpiceJet Ltd's share price is currently at Rs142.80, up by Rs10.1 or 7.61%, from its previous close of Rs132.70 on the BSE. The scrip opened at Rs144 and has touched a high and low of Rs152.60 and Rs138.15, respectively. So far, 1,23,31,410 (NSE+BSE) shares have been traded on the counter. The current market cap of the company is Rs7,958.26cr.
Interglobe Aviation Ltd's share price is currently at Rs1,614.80, up by Rs31.65 or 2%, from its previous close of Rs1,583.15 on the BSE. The scrip opened at Rs1,600 and has touched a high and low of Rs1,650 and Rs1,599.05, respectively. So far, 39,80,085 (NSE+BSE) shares have been traded on the counter. The current market cap of the company is Rs60,857.37cr.