INSUBCONTINENT EXCLUSIVE:
Jet Airways India Ltd.., the beleaguered carrier that's in the midst of bailout talks with its partner and lenders, is set to get an
emergency loan of as much as Rs 600 crore ($85 million) to help it tide over a cash crunch, according to people familiar with the
Etihad Airways PJSC and backed by their guarantees, the people said, asking not to be identified before a public announcement
The disclosure is likely to be made after Jet Airways' extraordinary shareholder meeting scheduled for Feb
21, one of the people said.The fund infusion would come as a lifeline for Jet Airways, Asia's worst-performing airline stock, that has
defaulted on interest payments, delayed salaries and grounded multiple aircraft in its struggle to stay afloat
Etihad, Mr Goyal and SBI have been holding talks for weeks over a rescue deal for the carrier that hasn't seen a profit for nine of the past
11 years in the face of cutthroat competition."That's a good amount, I'd take that as a big positive," said Mayur Milak, a Mumbai-based
analyst at IndiaNivesh Securities Ltd
"Crude has also came down from $85 to $60 and operational metrics have become more favorable
Once you get the money, that definitely adds to the sustainability of operations."Representatives for SBI and Jet Airways didn't immediately
respond to emails seeking comment
Etihad declined to comment
proposal, Etihad, which owns 24 percent of Jet Airways, will raise its stake to almost 44 percent by boosting capital at 150 rupees a share,
Mr Goyal's stake would fall to about 22 percent from 51 percent, and lenders would end up with more than 15 percent after swapping a part
of Jet's loans to equity, the people said.A final decision is pending as the plan needs the approval of the Securities and Exchange Board
of India, the market regulator, the people said.Any agreement to avert a collapse of the Mumbai-based airline would help save 23,000 jobs
and spare Prime Minister Narendra Modi the embarrassment of a failed business on his watch months before elections.Jet Airways, which
started operations more than two decades ago, has piled on debt as low-cost carriers lured fliers away with their cheaper, on-time,
With cost-conscious travelers, India has been a tough market for airlines
collapsed earlier this decade while state-owned Air India has survived on repeated bailouts.Jet Airways's extraordinary general meeting
later this month in Mumbai will seek shareholder approval to increase authorized share capital by issuing equity and preferred shares.
