Between Monday afternoon and now, shares of Jet Airways have surged as much as 23 percent. On Tuesday the stock rose by 9 percent to touch a high of Rs 278.90, while on Monday it closed 15.46 percent higher at Rs 261 apiece on NSE.

The rally comes after the cash-starved airlines' founder Naresh Goyal and his wife Anita Goyal resigned from the company's board of directors. Goyal decided to step down from his position as the chairman of Jet Airways nearly two and a half decades after he set up India's first full-service airlines.

Stakeholders and lenders of the airlines asked him to step down amid a debt slump.

An issue of 11.4 crore equity shares to the lenders upon conversion of Re 1 of the outstanding debt was also approved by the board on Monday, wherein, Rs 1,500 crore will be infused by lenders via debt instruments against the security of assets.

Analyst Jal Irani of Edelweiss Financial Services told CNBC-TV18 that the brokerage is not recommending anybody to buy shares of Jet Airways as they expect the airlines to "survive in a much smaller form" and not as "a carrier with about 124-126 planes at its peak." He suggests that investors need to look at the airlines with that perspective before making a bet.