Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
The Economic Times
11,664.75-22.75
Stock Analysis, IPO, Mutual Funds, Bonds & More

Jet Airways seeks $350 million soft loan from Etihad

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

PTI|
Dec 06, 2018, 04.38 PM IST
0Comments
MUMBAI: Cash crunched Jet Airways has sought a soft financing of USD 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 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 per cent stake in Jet Airways for Rs 2,060 crore, besides extending low-interest loan of USD 150 million as well as purchasing 50.1 per cent stake in its loyalty programme JetPrivilege.

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

The Middle-Eastern airline has, however, offered to finance as much as USD 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 to PTI.

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 September 30, 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 per cent lower at Rs 278.20 apiece on the BSE, against 1.59 per cent decline in the benchmark.
0Comments
Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for Live Elections News & Results, Latest News in Business, Share Market & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service