India Markets closed

Jet Airways crisis: Etihad plans to exit nosediving airline

Manisha Singhal
Etihad may exit Jet Airways

Etihad may exit from Jet Airways where it currently holds a 24% stake, source with direct knowledge of the developments told FE. Sources said that the Abu Dhabi-based carrier is willing to exit provided it is given the value of the current trading price of Jet.

The airline s board, which met in Abu Dhabi earlier this month to take a call on the bank-led provisional resolution plan, has not given a go ahead for the same, leaving the investors and the banks guessing on its stand on recapitalisation of Jet.

READ ALSO | Mindtree s 5 stinging questions to L&T in raging hostile takeover battle: Wish to be remembered for this?

Etihad, as per a March 8 draft memorandum of understanding between the airline and Naresh Goyal, had to agree to infuse `750 crore as interim funding and anywhere between `1,600-1,900 crore into Jet as a second stage of funding. The airline hasn t committed to any of these till now.

An Etihad Airways spokesperson said, As a minority shareholder, Etihad is working closely with Indian lenders, the company and key stakeholders to facilitate a solution for Jet Airways.

In the meantime, Jet Airways has stopped all its flights to Abu Dhabi abruptly since Monday. In a letter to its employees on Monday Naresh Goyal, Jet promoter, said that he is working closely with all stakeholders, including Etihad, for resolution of the tough situation.