Jet Airways: Hopes of revival
Shares of troubled airline services provider, Jet Airways (India) hit the upper circuit as it jumped 5% on hopes the airline will get operational by the summer of 2021.
The consortium of UAE-based businessman Murari Lal Jalan and London’s Kalrock Capital – which has won the bid to revive Jet Airways – on Monday said it expects to start operating the airline by the summer of 2021. The airline will retain the Jet Airways brand.
As per the resolution plan, Jet Airways intends to operate all of its historic domestic slots in India and restart international operations. If everything goes as per plan and the Consortium receives the NCLT and regulatory approvals on time, Jet Airways would be back in the skies by the Summer of 2021.
The stock has rallied this year on hopes of revival of the airline, and has jumped more than 155 per cent for the year to date, and currently trades mere 4.7% away from its 52-week high seen on November 5.
The new promoters of Jet Airways said that Delhi, Mumbai and Bengaluru will remain the hubs for Jet 2.0 with sub-hubs in Tier 2 and Tier 3 cities.
Jet Airways will also bolster its cargo vertical by forming a dedicated freighter service. With severely limited passenger footfall during the lockdown months and continued ban on international flights, airlines have turned towards cargo business to supplement their revenues. With several COVID-19 vaccines nearing rollout, authorities are once again relying on airlines to help with faster vaccine dissemination.
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