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Jet Airways tanks over 8% post reports of impending cost-cutting measures

Jet Airways tanks over 8% post reports of impending cost-cutting measures

Jet Airways tanks over 8% post reports of impending cost-cutting measures
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By CNBC-TV18 Aug 3, 2018 2:51:53 PM IST (Published)

Shares of Jet Airways tanked over eight percent in Friday trade after reports that the aviation company is looking at immediate cost cutting measures to keep itself afloat.

Shares of Jet Airways tanked over eight percent in Friday trade after reports that the aviation company is looking at immediate cost cutting measures to keep itself afloat.

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At 1:30 PM, Jet Airways' shares were trading at Rs 303.90, down by Rs 27.30 in value, or declining by 8.24 percent on the BSE.
Intra-day, it has ranged between a high and a low of Rs 325 and Rs 301.25 respectively.
The Economic Times earlier reported that Jet Airways will not be able to operate for more than two months without initiating cost cutting measures, terming the financial condition of the airline as ‘severe.’
Citing sources, CNBC-TV18 also reported that Jet Airways is looking at sale and lease back of current wide bodied planes to infuse cash. The company has currently around 16 air planes.
Taking additional measures to cut down on expenditure, Jet Airway is renegotiating contracts with vendors across the board and will also cut down loss making routes to save cost.
The financially stressed airlines has already grounded a few ATRs which were running on loss making routes.
It plans to implement early release of planes on which leases are getting expired in the next 1-2 years, while simultaneously hoping for early induction of B737 Max which will save fuel cost by 15-20 percent.
The company has not yet responded to CNBC-TV18's query.
Aviation stocks traded mixed on the BSE index with shares of InterGlobe Aviation, which owns and operates IndiGo, traded higher by 1.32 percent at Rs 975.25, while SpiceJet stocks were trading lower at Rs 94.70, down by 2.37 percent.
The BSE Sensex traded higher by over 330 points to 37,496, rising by nearly 0.9 percent at 1.55 pm. The Nifty was at 11,335, up by 90 points, or 0.80 percent.
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