The price of Jet Airways rose 5% at Rs 75.60 per share on the Bombay Stock Exchange (BSE) with an approximate volume of 57489, at the time of writing, after the consortium led by Mr Murari Lal Jalan and Kalrock Capital announced the revival of Jet Airways as a full-service carrier. “The Jet 2.0 program is aimed at reviving the past glory of Jet Airways, with a fresh set of processes and systems to ensure greater efficiency and productivity across all routes. 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 National Company Law Tribunal (NCLT) and regulatory approvals on time, Jet Airways would be back in the skies by the Summer of 2021,” said the release.
The consortium intends to make Jet Airways as the corporate full-service airline operating on domestic and international routes. Like in the past, The Jet 2.0 hubs will remain in Delhi, Mumbai, and Bengaluru. “The revival plan proposes to support Tier 2 and Tier 3 cities by creating sub-hubs in such cities. This would boost the economy in these cities, help Jet Airways stand back on its feet fast, and support the overall vision of the Indian Government to promote aviation business through Tier 2/ Tier 3 Cities in India,” says the release. The consortium plans to increase cargo services to include dedicated freighter service.
The Jalan and Kalrock consortium also explained the reason for bidding for Naresh Goyal-founded Jet Airways. “The Consortium had evaluated the option of starting a new airline but some of the inherent strengths of Jet Airways like the optimal flight slots, brand value and reputation for best-in-class inflight service and safety, giving Jet 2.0 an edge over others, were too tempting to resist. The Consortium decided that it would be advantageous to re-energise and start Jet Airways on a clean slate with an established brand,” it said in the release.
The consortium also finds the current market more conducive as the COVID-19 Pandemic has hobbled the airline sector and the big players may not have an undue advantage currently.
The stock is yet to reach a 52 Wk high of Rs 79.2 per stock. The peak the stock reached today was Rs 75.60 on BSE. On 31 March 2020, the stock had seen its lowest of Rs 13.65 per share. In the peer competition, Jet Airways has come close to Spice Jet which is trading at Rs 94.50 but much below InterGlobe Aviation (IndiGo) which is trading at Rs 1740.30.
