Thursday, January 17, 2019

Etihad Dismisses Reports of $35 million Jet Airways Bailout

Abu Dhabi: Etihad Airways and Jet Airways on Wednesday dismissed reports by Indian media about the UAE airline's offer to buy more shares of the troubled Indian carrier in a $35 million instant bailout deal as speculative.

An Etihad spokesperson, when asked to comment on the reported offer to pick up shares of debt-laden Jet Airways at a 49 per cent discount and to immediately release $35 million to rescue the Indian carrier, said "Etihad does not comment on rumour or speculation."

After a television channel reported on Tuesday that Etihad had offered to pay Rs150 for each share of the Indian airline, in which Etihad already has a 24 per cent stake, Jet Airways shares fell as much as 7.5 per cent to 271.75 rupees in their biggest intraday drop since early December.

Speaking to Khaleej Times, a Jet Airways spokesman said the carrier has undertaken a series of initiatives to enhance economic performance, efficiency and productivity that will ensure the long-term health of its business given the challenging aviation industry conditions against the backdrop of a rise in the Brent fuel price, a depreciating Rupee and a difficult pricing environment.
17/01/19 Issac John/Mcclatchy/AviationPros