The past year and a half has been tumultuous for Jet Airways. It saw Etihad's investment, a record annual loss (2013-14) of Rs 4,129 crore and a nearly 60 per cent drop in its stock price – in 12 months, the scrip is down 27 per cent.
The operating environment has remained tough and competition has intensified, resulting in Jet losing passengers and market share. A financial turnaround with the Etihad partnership and debt restructuring has not fully materialised.
The stock began rising from October-November 2012, as the airline management started the negotiations with Etihad to sell 24 per cent stake. By January 2013, when the airline first confirmed the talks, the stock had risen to Rs 607, a rise of 75 per cent over the October 2012 price. In April 2013, when it signed the Rs 2,057-crore deal, the stock reached a high of Rs 688.60. Since then, it is in a downtrend; it currently trades around Rs 212.
01/10/14 Aneesh Phadnis & Ram Prasad Sahu/Business Standard
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The operating environment has remained tough and competition has intensified, resulting in Jet losing passengers and market share. A financial turnaround with the Etihad partnership and debt restructuring has not fully materialised.
The stock began rising from October-November 2012, as the airline management started the negotiations with Etihad to sell 24 per cent stake. By January 2013, when the airline first confirmed the talks, the stock had risen to Rs 607, a rise of 75 per cent over the October 2012 price. In April 2013, when it signed the Rs 2,057-crore deal, the stock reached a high of Rs 688.60. Since then, it is in a downtrend; it currently trades around Rs 212.
01/10/14 Aneesh Phadnis & Ram Prasad Sahu/Business Standard
