Jet Airways board to discuss funding options today

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Published: December 20, 2018 12:18:30 AM

Jet has been in negotiations with its strategic partner, the Abu Dhabi-based carrier Etihad Airways for a possible fresh round of equity infusion that is likely to increase its holding in Jet to 49% from the existing 24%.

Jet Airways board to discuss funding options today

The board of directors of Jet Airways is likely to meet in Mumbai on Thursday.

According to sources, the unscheduled meeting has been called to take stock of various funding options available before the cash-strapped carrier.

“Thursday’s board meeting has been called at the behest of independent directors who are worried about the delay on the part of the airline in closing on its funding and equity partnership options. The directors want some clarity to emerge on these issues,” a source aware of the meeting told FE.
A Jet Airways spokesperson declined to comment.

Jet has been in negotiations with its strategic partner, the Abu Dhabi-based carrier Etihad Airways for a possible fresh round of equity infusion that is likely to increase its holding in Jet to 49% from the existing 24%.

Jet is also in discussions with Tata Group that owns two airlines, budget carrier AirAsia and full service airline Vistara for a possible share-swap agreement that hinges onJet’s promoter-chairman Naresh Goyal exiting the airline completely.

Etihad Airways got in some liquidity into the airline as it pumped $35 million as a pre-purchase payment for its flying miles programme, JetPrivilege, in which Etihad has a majority stake.

With effect from December 1, Jet Airways announced appointment of Robin Kamark, as a nominee director of Etihad Airways who is largely responsible for leading Etihad Aviation Group’s minority equity investment strategy and optimising revenue and cost synergies between Etihad Airways and its equity partner airlines.

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