Crisis deepens for debt-ridden Jet Airways as Etihad Airways refuses to infuse fresh funds under the current terms and conditions of the resolution plan.
The UAE-based airline, which currently owns 24 per cent stake in Jet Airways, has communicated to a group of lenders led by State Bank of India (SBI) that it will not infuse emergency funds unless the deal is reworked. Etihad Airways was to provide interim financing of INR 750 crore.
Following these complications, Jet Airways is said to explore possibilities of bringing in a new investor, thereby leading to Etihad’s complete exit from the deal.
Besides, Jet Airways’ decision to suspend its services to Abu Dhabi is said to have further aggravated the tension between the two airlines. From March 18, Jet Airways cancelled all its flights to the UAE capital citing operational reasons.
Meanwhile, the Indian full-service carrier has grounded four more planes due to non-payment of lease-rentals. With this, more than 50 of its aircraft are non-operational taking a heavy toll on the airline. jetairways.com, etihad.com