New Delhi: Jet Airways, the country’s leading service carrier is cash-strapped and in desperate need of cash to stay afloat. With outstanding dues and money owed to lessors and vendors, the airline hasn’t been able to disburse timely salary to its employees.
Reports are emerging that Jet Airways is in talks with Etihad Airways for a rescue or bailout plan. Reuters reported, citing sources, that the top executives of two airlines have met Jet Airway’s bankers in the city to find out ways to address its cash flow issues and to evaluate its future business plan.
Etihad’s 24% stake in Jet Airways
In 2013, Etihad Airways picked up 24% stake in the Naresh Goyal-run airline and further investment into the latter is not ruled out.
With infusion of funds, Jet Airways managed to weather the storm but the cut-throat competition in the aviation industry ensured that the 25-year-old airline remains in financial mess. Rising petrol prices and weakening rupee added further woes to Jet Airways woes.
Another stake sale in Jet Airways?
Abu Dhabi-based airline rescued Jet Airways in 2013 but this time it may be different, say reports.
With bank NPAs on the surge and tightening norms in the banking sector, the airlines may not find lender easily. Also, the Etihad may be more cautious in further opening its purse strings.
Both the airlines didn’t respond to the queries on rescue plan being worked out by both the airlines, the news agency said.