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SpiceJet Shares Jump 15% As Jet Airways Stops Flights

Subojit Aich 0
SpiceJet Shares Jump 15% As Jet Airways Stops Flights

SpiceJet shares jumped as much as 15% on news that Jet Airways had suspended its operations

SpiceJet shares jumped as much as 15 per cent on Thursday, after news that Jet Airways had suspended its operations. SpiceJet chairman Ajay Singh said the budget airline was taking “all possible proactive measures” to deal with capacity reduction in the aviation industry, a day after rival Jet Airways was forced to ground all flights as it ran out of funds.

Shares in SpiceJet jumped to as much as Rs. 152.60 apiece on the BSE, compared with their previous close of Rs. 132.70. That marked a spike of 15 per cent in intraday trade. On the other hand, Jet Airways shares fell 30.29 per cent to Rs. 168.60 at the day’s weakest point.

Jet Airways halted all flight operations indefinitely on Wednesday after its lenders rejected a plea for emergency funds, potentially bringing the curtains down on what was once India’s largest private airline.

SpiceJet will add six more Boeing 737-800 NG aircraft on a dry lease, in addition to the sixteen 737s and five Bombardier Q400 airplanes it inducted recently, the airline said in a statement.