Monday, March 11, 2019

Naresh Goyal seeks Rs 750 crore lifeline from Etihad, warns delay may ground Jet Airways

Mumbai: Jet Airways chairman Naresh Goyal has sought an urgent funding of Rs 750 crore from its equity partner Etihad, citing "the very precarious" position of the airline following the lingering cash flow issues which got amplified after the forced grounding of over 50 of its planes.

In a letter to the Gulf-based carrier's group chief executive Tony Douglas, Goyal said the airline has also secured the go-ahead from the aviation ministry to pledge its shares in JetPrivelege for securing the interim funding.

The airline holds 49.9 per cent stake in the loyalty programme, while the majority is with Etihad.

It can be noted that Etihad board is meeting in Abu Dhabi on Monday to discuss the resolution plan for Jet in which it owns 24 per cent stake since April 2014.

"I now look forward to your support and cooperation in saving the airline by an urgent fund infusion of Rs 750 crore by early next week, so that a matching contribution from banks is also disbursed, as per the resolution plan," Goyal said in the letter dated March 8.
11/03/19 PTI/Times of India