Even as the buzz surrounding Etihad Airways increasing stake in Jet Airways continues to get louder, the Naresh Goyal-promoted airline said that the Company has been working on various cost cutting measures, in consultation with all stakeholders.
Even as the buzz surrounding Etihad Airways increasing stake in Jet Airways continues to get louder, the Naresh Goyal-promoted airline said that the Company has been working on various cost cutting measures, in consultation with all stakeholders. The full service carrier, which has been grappling with financial woes, defaulted on loan repayment to a consortium of Indian banks led by State Bank of India (SBI) in December last year.
Sharing details about its resolution plan, Jet Airways said that it contemplates various options, including proportion of equity infusion by various stakeholders and the consequent change in the company’s board, is being looked at. Among the alternatives, the Company has been working on various cost cutting measures, debt reduction and funding options including infusion of capital, monetisation of assets including the Company’s stake in its loyalty program, in consultation with key stakeholders.
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“SBI in consultation with the other members of the consortium and the other stakeholders has been working on a comprehensive resolution plan towards a turnaround of the company for its sustained growth and restoration of financial health,” Jet Airways said in an exchange filing. The airline also said the resolution plan is presently under active discussion amongst the stakeholders and that the various options are yet to be crystallised and agreed to by the stakeholders in the best interests of the company.
Earlier, shares of India’s major private sector carrier Jet Airways plunged in trade on Wednesday morning, after media reports said that Etihad Airways is looking to acquire a stake in the carrier only at a price of Rs 150 per share. Jet Airways share price ended 7.95% lower at Rs 266.05. According to a CNBC TV18 report, Etihad Airways group CEO Tony Douglas has written to SBI Chairman regarding Jet Airways restructuring, the news channel reported citing unidentified sources.
“We refer to the various media reports concerning a communication alleged to have been sent by Etihad Airways PJSC to State Bank of India in relation to the resolution plan for Jet Airways (India) Limited (“Company”). At the outset, we hereby categorically state that nothing mentioned in the various media reports shall be deemed to be attributed to the Company and we also vehemently deny any discussions or disclosure on our part, with any media concerning the matter,” Jet Airways clarified.