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Jet Airways plunges 5% on staff layoffs, financial woes


NEW DELHI: Shares of India’s second-biggest airline Jet Airways plunged over 5 per cent in morning trade on Monday amid reports of the firm being in a financial soup.

The private airline is trimming its workforce and operations further as it battles its worst financial crisis.

As per a report published in ET, at least 15 people at manager or general manager level in departments such as engineering, security and sales have been asked to leave in October, said a person aware of the matter. The airline has grounded eight of its planes at the Chennai and Mumbai airports.

The country’s biggest lender State Bank of India said earlier this year that the airline was on its stressed loans list, which was denied by Jet.

The carrier then deferred its earnings announcement, saying auditors hadn’t presented them to the board. Jet later clarified it had sought more time from them.

Shares of the company were trading at Rs 218.95 apiece, down 4.51 per cent, around 10 am on Monday. The BSE Sensex was 0.21 per cent up at 34,387.

Shares of InterGlobe Aviation (IndiGo) was trading with a loss of 2.75 per cent at Rs 810.30 at that time.

Credit-rating agency ICRA downgraded the long-term rating of InterGlobe Aviation’s Rs 8,000-crore bank facilities citing difficult macroeconomic conditions facing India’s airline industry.

InterGlobe Aviation operates India’s biggest airline, IndiGo. ICRA downgraded the long-term rating to A+ from AA and reaffirmed the short-term rating of A1 on the loan facilities.

Source: Economic Times