Friday, December 07, 2018

Jet Airways seeks $350 million soft loan from Etihad

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.
06/12/18 PTI/Business Today

0 Comments: