Etihad may exit from Jet Airways where it currently holds a 24% stake, source with direct knowledge of the developments told FE. Sources said that the Abu Dhabi-based carrier is willing to exit provided it is given the value of the current trading price of Jet.
The airline’s board, which met in Abu Dhabi earlier this month to take a call on the bank-led provisional resolution plan, has not given a go ahead for the same, leaving the investors and the banks guessing on its stand on recapitalisation of Jet.
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Etihad, as per a March 8 draft memorandum of understanding between the airline and Naresh Goyal, had to agree to infuse `750 crore as interim funding and anywhere between `1,600-1,900 crore into Jet as a second stage of funding. The airline hasn’t committed to any of these till now.
An Etihad Airways spokesperson said, “As a minority shareholder, Etihad is working closely with Indian lenders, the company and key stakeholders to facilitate a solution for Jet Airways.”
In the meantime, Jet Airways has stopped all its flights to Abu Dhabi abruptly since Monday. In a letter to its employees on Monday Naresh Goyal, Jet promoter, said that he is working closely with all stakeholders, including Etihad, for resolution of the tough situation.