Jet Airways shares soar after Jalan Karlock Consortium says it has sufficient funds for airline revival

Jet Airways shares were locked in the five per cent upper circuit in morning deals at Rs 39.8 apiece on BSE. The performance came on the back of Jalan Karlock Consortium reinforcing belief that it has funds to revive the struggling airline; and the appointment of officials on prominent positions in the company. 

In an important development in the aviation industry on Friday, the Directorate General of Civil Aviation accepted the flight resumption plan submitted by Go First, with some conditions.

As per the approved plan, the embattled airline can operate 114 daily flights with 15 aircraft.

However, the approved plan is subject to the availability of funds and court orders.

Go First stopped flight operations on May 2 and has not paid salaries to its pilots for May and June.

The airline also wrote a letter to pilots on Friday, informing them that their salaries have been revised, and asking them to be available for flying and training duties.

It is yet to be seen when the airline will resume its operations. In view of this development, we take you through the share prices of prominent airlines.

Jet Airways 

Jet Airway started the day on a rousing note as its share price soared 4.98 per cent to Rs 39.82 on Monday morning.

The performance came on the back of two important developments related to the company.

Jalan Karlock Consortium has said that despite many challenges, it has sufficient funds not only to revive Jet Airways but also to pay all its creditors as per the resolution plan.

The company also announced on Friday that Sundaram Ramesh had been appointed as a Whole-time Director and CFO; Gautam Acharya would be Whole-Time Director; and Rajesh Prasad would be a Non-Executive Director.

Spicejet

The airline, in its legal case, told the National Company Law Tribunal on Friday that Willis Lease Finance is not among the four operational creditors of the airline.

The court has deferred the proceedings, and the tribunal will now hear the case again on July 31.

Amid such a backdrop, the share of Spicejet started on a positive note on Monday morning, jumping 0.91 per cent to Rs 29.83.

The share reached a high of Rs 30.04. It remains to be seen if it maintains momentum for the rest of the day.

Interglobe Aviation Limited

Interglobe Aviation Ltd, the parent company of Indigo, is trading down 0.27 per cent to Rs 2,671.25 in early trading. The share price started the day at Rs 2,678.50 and reached at Rs 2,702 for a brief moment before slipping.   

The airline is in the list of the top 10 airlines with the most daily flights. It is eighth in the list with 1,853 active daily flights.