Indian airlines jump after Go First files for bankruptcy

Jet Airways (India)

03/05/2023 07:19

** Shares of Indian airlines up around 5% after budget
carrier Go First filed for bankruptcy on Tuesday
    ** IndiGo parent Interglobe Aviation  INGL.NS  rose as much
as 8.2%, now up 5.1%
    ** INGL stock set to rise for a second straight session
    ** Private carrier Jet Airways  JET.NS  hit upper circuit at
60.9 rupees, up 5%
    ** JET snaps five straight sessions of losses
    ** Credit Suisse in a note says bankruptcy can benefit
Indigo in terms of market share, stronger yields in a
capacity-constrained environment, higher leverage with global
engines, planes OEMs
    ** "Bankruptcy process may lead to change of owner post a
haircut on debt and thus GoFirst can possibly fly again" -
Credit Suisse 
    ** The brokerage also says, based on Jet Airways'
experience, "it seems that reviving an airline through the
bankruptcy process is difficult" as airlines have few hard
assets, brand value for an airline with small market share is
low, and bankruptcy process tends to be dispute-prone
    ** Around 6.6 times the 30-day average volume of INGL shares
change hands, 1.4 times for JET



 (Reporting by Anuran Sadhu in Bengaluru)
 ((Anuran.Sadhu@thomsonreuters.com ;))