Monday December 16, 2019
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Jet Airways Almost on The Brink of Shutdown, Facing Mounting Ground Problems

The possible scenario which may send the scrip plunging, say analysts, is if the bidders do not match up to the expectations of lenders or they lose interest after the initial Expression of Interest or the whole process gets entangled or delayed in the law courts.

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"In the case of other airlines facing stress, the government reacted differently largely because of their lower share on international routes," he added. Pixabay

BY: RAVI DUTTA MISHRA

From a fleet of 119 until last year to only 7 as of on Monday, Jet, once India’s second-largest airline by market share, is almost on the brink of a shutdown. But the change in fortune for the airline has not dented investor confidence as the Jet counter continues to remain resilient.

Jet’s scrip is down just by a little over 6 per cent since January 1 even though the airline’s performance has nose-dived ever since it defaulted on its loan commitment in December.

For Jet, the developments are unlike how things panned out for an airline like Kingfisher during its turbulent times that ultimately led to its closure. Analysts say that this is largely owing to Jet’s 30 per cent market share on international routes.

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Prior to the grounding which has depleted around 90 per cent of Jet’s fleet size, the airline, with its large fleet, offered flights to 56 destinations in India and overseas. Pixabay

“The government is keen that they should keep this entity afloat by selling it to other airline partners. This is also important as Jet accounts for 30 per cent market share on international routes,” Sandeep Raina, Associate Director, Edelweiss Professional Investor Research, told IANS.

“In the case of other airlines facing stress, the government reacted differently largely because of their lower share on international routes,” he added.

Prior to the grounding which has depleted around 90 per cent of Jet’s fleet size, the airline, with its large fleet, offered flights to 56 destinations in India and overseas.

Besides its international share, Jet has some valuable assets, said Deepak Jasani of HDFC Securities.

“It owns 16 planes which are worth $400 million. The Jet Privilege programme, the international routes, and landing and parking slots in key cities make the airline an attractive option for potential buyers or can be easily monetised by its lenders (under IBC),” he added.

However, the airline on Monday said it has extended the cancellation of all its international flights until April 18, which might spell trouble for it on the stock exchanges.

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Jet’s scrip is down just by a little over 6 per cent since January 1 even though the airline’s performance has nose-dived ever since it defaulted on its loan commitment in December. Pixabay

Inflating debt is another major concern for investors. Jet owes over Rs 8,000 crore to a consortium of lenders led by the state-run State Bank of India (SBI).

Also Read: Common Myths Around Sleep Decoded!

The possible scenario which may send the scrip plunging, say analysts, is if the bidders do not match up to the expectations of lenders or they lose interest after the initial Expression of Interest or the whole process gets entangled or delayed in the law courts.

“If a non-strategic investor (including the National Infrastructure Investment Fund) wins the bid or the company needs to be nationalised or taken over by the government (through Air India or any other route)… in all such cases, its stock price could plunge,” said Jasani.(IANS)

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Ways to Make Money in the Stock Market

Adopt a suitable trading strategy to earn more money in the stock market

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Stock Market
Know about how to make profit in the stock market. Pixabay

Individuals who want to earn money in the stock market have plenty of choices to make. In addition to picking and choosing specific securities to trade, they first need to select a general trading strategy. Too many enthusiastic people jump into the market without a plan of attack, which can mean financial suicide.

The smart thing is to decide on an approach that makes sense for your level of risk tolerance, your financial resources and the amount of time you can give to the pursuit. Day traders, for example, often make the market their career, devoting every weekday morning and afternoon to the pursuit of profit. For the grand majority of us, however, other methods make more sense.

Peruse the list below and decide which one is the best fit for your personality, budget and schedule:

Long-Term Trading

Whether you have a little or a lot of money to invest, the long-term strategy can be a good fit for anyone. More than half of all people who buy and sell stocks online fall into this category. The beauty of working this way is that you can choose stocks that move slowly and build value over the long-haul. As long as you are patient and not worried about making a kill, this approach makes sense. Those who have self-directed retirement accounts often spend just a few hours each year re-balancing their portfolios. The drop shares that haven’t moved at all, add one or two new companies to the mix and leave it at that, until next year’s readjustment.

Stock market
In order to make more money in the stock market, individuals need to adopt a suitable trading strategy. Pixabay

Day Trading

If you have a strong stomach, at least $25,000 to put into a brokerage account and a lot of time on your hands, day trading could be your calling. Be ready for a few months of training, many sessions on a simulated platform and about a year of ramping up to full-time activity. Day traders usually hold no positions overnight but take their profits by scalping small price changes on large buys. If XYZ company, for example, is selling for $89.50 per share and suddenly goes up to $89.60, a day trader might buy 100 shares if the market indicates that the price will continue to rise to $90. That would mean a profit of $40 in the span of a few minutes, but 100 shares would cost close to $9,000.

Specializing in One or Two Securities

It’s becoming more common to specialize in just one or two companies. A big advantage to this style is the knowledge that comes with specialization. If you decide to only buy and sell shares of Microsoft and Walmart, for example, you’ll be pretty adept at spotting price changes before they occur.

Also Read- Traders Protest Government Collusion with Amazon, Flipkart: Report

Profiting from Precious Metal Stocks

Even people who are not keen on Wall Street in general often trade stocks based on the precious metals. This group includes companies that operate in the mining industry, which is a sector unto itself. Additionally, metals enthusiasts can buy and sell exchange traded funds (ETFs) that hold massive amounts of bullion. Silver and gold traders have been using ETFs and mining stocks to play the market for decades.