Jet Airways seeks $350 mn soft loan from Etihad; continues to hold discussions with Gulf partner to offload additional stake

Mumbai: Cash crunched Jet Airways has sought a soft financing of $350 million from its investment partner Etihad Airways, as it continues to hold discussions with the latter to offload additional stake in the carrier, an airline source said on Thursday.

The Abu Dhabi-based Etihad had come to the rescue of the Naresh Goyal-controlled airline during the earlier downturn too.

In 2013, it had acquired 24 percent stake in Jet Airways for Rs 2,060 crore, besides extending the low-interest loan of $150 million as well as purchasing 50.1 percent stake in its loyalty programme JetPrivilege.

A Jet Airways aircraft. Reuters image.

A Jet Airways aircraft. Reuters image.

"Jet Airways has sought $350 million soft loan from Etihad even as its discussions with the Gulf carrier continue for selling the additional stake," the source privy to the development said.

The Middle-Eastern airline has, however, offered to finance as much as $200 million, the source said.

"A final decision on the proposal is yet to be taken," the source added.

When contacted, both Jet Airways and Etihad refused to comment on the deal.

"Etihad does not comment on rumour or speculation," an Etihad Airways spokesperson said in an e-mail response.

A Jet Airways spokesperson also said that the carrier does not comment on "speculation" in line with its policy.

With three back-to-back quarterly losses and a net debt of Rs 8,052 crore as on 30 September, the airline is working on ways to raise funds and reduce costs.

Last month, Jet Airways chief executive officer Vinay Dube had said the airline was in active discussions with various investors to secure sustainable financing.

The company's scrip ended the day 3.03 percent lower at Rs 278.20 apiece on the BSE, against 1.59 percent decline in the benchmark.

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Updated Date: Dec 06, 2018 16:32:15 IST

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