Etihad already holds 24 per cent stake in Jet Airways.Jet Airways is most likely to get a lifeline if United Arab Emirates (UAE)-based Etihad and Jet manage to reach an agreement, and Etihad decides to increase its stake in carrier in which it already holds a 24 per cent stake while Jet Airways promoter Naresh Goyal holds 51 per cent.
However, Etihad is insisting on a cheaper deal this time from Jet promoters while a consortium of banks led by State Bank of India (SBI) working on debt restructuring plans.Sources say, Jet Airways' huge debt has led to delayed salaries to its staff, including pilots and engineers.
The full-service carrier has been grappling with financial woes for some time.
Jet Airways also defaulted on payments to lessors, compounding problem.
Since then there has been some relief in oil prices and Jet Airways has been using this time.Jet Airways is looking at two-pronged approach at resolving crisis which includes debt restructuring and fresh infusion of funds to meet its immediate financial needs.Etihad has also sought top positions for its officials on Jet Airways board if it agrees to raise its stake.Jet founder Naresh Goyal will have to reduce his 51 per cent stake for deal to go through and this is something that he has avoided so far.In a statement Jet Airways, denied reports on resolution plan and said, "We refer to various media reports concerning a communication alleged to have been sent by Etihad Airways PJSC to State Bank of India in relation to resolution plan for Jet Airways (India) Limited ("Company").
At outset, we hereby categorically state that nothing mentioned in various media reports shall be deemed to be attributed to Company.."