Jet revives talks fora stake sale

The airline’s founder, Naresh Goyal, may offload a part of the promoter’s stake in the company

Total costs (₹ cr)

Net debt (₹ cr)

10,191.38 31 Mar 2017 31 Mar 2018 7,091 (Q4 2018)

9,104.18 Jet Airways reported a loss of ₹636.45 crore in the year ended 31 March

Uncertainty looms over

Etihad continuing as a stakeholder in Jet Airways Aviation consultant CAPA

India said in March that

Etihad might sell its entire 24% stake in Jet by Q3 of FY19 discussions (on stake sale) were ongoing, the promoters were looking for a significant premium to the then market price of the airline but things are expected to be slightly different as the urgency to raise cash is far greater now,” the second person added.

Jet Airways reported a loss of ₹636.45 crore in the year ended 31 March. In the same year, smaller rival Spicejet reported a profit of ₹566.66 crore and Indigo, India’s biggest airline, reported a profit of ₹2,242.37 crore.

The second person said Eithad had previously sought to purchase a controlling stake in Jet Airways but the offer was declined by Goyal.

Jet Airways had in November last year signed an enhanced cooperation agreement to expand operations between Europe and India with Air France-klm. The pact has led to uncertainty over whether Etihad will continue as a The management has asked a section of employees to take up to a 25% cut in their salaries

The Naresh Goyal-controlled airline is looking to trim non-fuel costs. stakeholder in Jet Airways, the second person said.

A spokesperson for Jet Airways said the airline does not comment on speculation as a matter of policy.

Etihad’s media team did not respond to an email seeking comment till Thursday night.

Rising jet fuel prices and a depreciating rupee against the dollar has swelled operating costs of airlines as the bulk of payments are dollar denominated.

Brent crude price surged 43.4% in the past 12 months. The rupee weakened 7.2% against the dollar in the same period.

Aviation consultant CAPA India had in March said Etihad may sell its entire stake in Jet by the December quarter.

At that time, Jet Airways said it does not comment on speculation. Etihad bought its stake in Jet Airways in April 2013 for about ₹2,069 crore.