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Debt-laden Jet Airways Nears Funding Deal with Etihad: Report

News18.com
Executives from Etihad and Jet have met some of the airline's bankers in Mumbai in recent days to discuss ways to address its cash flow issues and evaluate the carrier's future business plan, the sources said.

Mumbai: Jet Airways Ltd is close to finalising a deal with shareholder Etihad Airways, which will inject fresh funds for the debt-laden carrier.

Jet founder and majority shareholder Naresh Goyal has assured the airline's pilot union that the funding, which will likely result in route restructuring and more flights to Abu Dhabi, could take place as early as mid-December, CNBC-TV18 reported.

Goyal has also assured pilots that there will be no delays in salary payments from April 1, according to the channel.

Debt-laden carrier Jet Airways, which is struggling to cut costs and stay afloat, has delayed salary payments to employees and is trying to raise money by selling a stake in the airline and its loyalty programme. The airline is cutting flights on some routes and increasing frequencies on others to boost profits.

CNBC-TV18 also said that Jet's talks with conglomerate Tata Group for a rescue deal have hit a road block over demands that JetLite, its low-cost airline, be shutdown.

Neither Jet nor Etihad immediately responded to Reuters' emails seeking comment.