NEW DELHI: As problems in cash strapped Jet Airways deepens, investors are favouring stocks of its competitors — SpiceJet and IndiGo — betting that they will have a larger market share.
Accordingly, stocks of SpiceJet rose over 14 per cent on Friday and have been rising for the last four sessions gaining 25.93 per cent. Similarly, IndiGo’s scrip gained 10 per cent in the last four sessions.
“SpiceJet shares are favoured as they have proposed to operate 40 aircraft grounded by Jet Airways,” said Deepak Jasani of HDFC Securities.
“IndiGo and SpiceJet shares are also gaining as a number of flights are being cancelled by Jet Airways.”
Earlier in the week, around 260 of Jet Airways’ pilots have applied to join SpiceJet even as investors like public sector banks struggle to stitch a rescue plan for the airline.
Over 70 per cent of Jet Airways aircraft have been forced to ground over due to non-payment of amounts outstanding to lessors.
Besides, industry sources have said that lessors are offering 50 of its Boeing aircraft to SpiceJet.
“Lessors with 50 planes, all belonging to Jet, have contacted SpiceJet,” a source told IANS in Mumbai. “They are desperate to get out of Jet’s financial mess.”
Jet Airways stocks, however, gained after falling for two straight sessions on Friday over reports that a SBI-led consortium was set to reinitiate talks with Tata Group to invest in the struggling carrier.