Don’t probe us for what Naresh Goyal did: Etihad throws new challenge in Jet Airways revival

By: |
June 07, 2019 12:14 PM

Etihad has posed the demands before the consortium of lenders led by SBI to infuse funds in Jet Airways.

jet airways, aviation sector, aviation industryJet halted operations on April 17 after running out of cash.

Efforts to revive Jet Airways have apparently suffered another setback with Gulf carrier Etihad posing a new list of demands to be met by the authorities before it agrees to rescue the beleaguered airline. Etihad has posed the demands before the consortium of lenders led by SBI to infuse funds in Jet Airways, ET Now reported. “There are two-three things going on. Firstly, Etihad wants indemnification from inquiries and investigations which are going against Jet Airway founder Naresh Goyal,” the report said citing sources. Further, Etihad needs a confirmation from the airport authorities and the aviation watchdog DGCA that Jet Airways will get its slots back once the Gulf airline puts in the money. Etihad plans to start 45-50 aircraft after Jet Airways gets on track.

Etihad has also asked operational creditors to bear 60-70% haircut. The lenders are yet to respond to Etihad regarding the demands and it is expected that the lenders will wrap up the bidding process by 10 June 2019.

Earlier, DGCA had allotted the Jet Airways slots to various rival airlines including IndiGo, SpiceJet, Vistara among others. DGCA had then said that the slots are given temporarily for three months and Jet Airways will get the slots back upon its revival. Out of over 700 Jet Airways slots, the DGCA had allotted a little less than 450 slots to other domestic airlines. SpiceJet had received most of these slots.

SpiceJet co-founder Ajay Singh had previously said that the Jet Airways shut down should be “a wake-up call” to the aviation industry. He also said that policymakers should be partly blamed for the Jet Airways grounding as the cost structure is high. Also, internal factors and high competition also resulted in the Naresh Goyal founded airline, Ajay Singh said at the CAPA Aviation Summit.

Jet Airways had finally announced shutdown on 17 April 2019 after it struggled to stay afloat for several months. Meanwhile, rival airlines made the most out of the opportunity and expanded their operations to fill the void created in the domestic market.

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