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Shares in Jet Airways fell steeply on Tuesday after local media reported that the embattled Indian carrier’s management had proposed a complete suspension of operations.

Jet stocks tumbled as much as 18.3 per cent to Rs213.2 ($3.06) a share, after ET Now reported that the carrier’s management might suspend operations entirely. The stock pared some of its losses shortly afterwards to trade down 12.5 per cent on the day. Jet declined to comment on the move.

The carrier was operating fewer than 10 planes on Monday, and left passengers around the world stranded on Thursday last week when it cancelled all international flights. 

Jet has struggled to stay afloat because of a liquidity crunch that has left it unable to pay salaries and make loan payments to lessors and creditors. After talks with Abu Dhabi’s Etihad Airways, which bought a 24 per cent stake in Jet in 2013, broke down, founder and chairman Naresh Goyal stepped down and quit the board on March 25. A consortium of lenders took over his 51 per cent stake.

The airline’s pilots had threatened to go on strike on Sunday over unpaid salaries, but later deferred the action. 

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