Investors were highly bullish on
Jet Airways stock on Dalal Street during Tuesday's trading session, as they cheered the Murari Lal Jalan and Kalrock Capital consortium's revival plan to bring the airline back in the skies by next year. Jet Airways has been halted since last year due to mounting debt, however, the consortium is the new owner of the airline and once again operations are expected to commence soon. Jet Airways had a significant market share in both domestic and international front before grounding.
At around 10.56 am, Jet Airways was trading at the upper circuit limit of Rs75.60 per piece up by 5% on Sensex. The stock was also near its 52-week high of Rs79.15 per piece.
Jet Airways in a press release on Monday said 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 NCLT and regulatory approvals on time, Jet Airways would be back in the skies by the Summer of 2021.
Manoj Narender Madnani, Board Member of Jalan Kalrock Consortium said, “Jet Airways has been a brand with a glorious history of over 25 years, and it is the vision of the Consortium to put Jet Airways back in the skies at the earliest opportunity. We aim to re-energise the brand by infusing energy, warmth, and vibrancy into it while making it bigger and better. Over the years, the brand has created loyal customers and we wish to bring in freshness by adding value – an Indian brand with a global outlook, warm yet professional which symbolises the New India, Young India. With the revival of Jet Airways, it will restore the confidence among the Jet customers to fly again and experience its world-class facilities.”
Consortium's vision is to regain the lost ground, set new benchmarks for the airline industry with the tag of being the best corporate full-service airline operating on domestic and international routes.
In the revival plan, the consortium's plan to retain the airline's hub in Delhi, Mumbai, and Bengaluru like before.
The Consortium 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.
Additionally, the Consortium's vision for Jet 2.0 includes a plan to increase cargo services to include dedicated freighter service, a market currently underserved by any Indian carrier.