Eti­had flies in to res­cue Jet, will help raise loans

Mint ST - - FRONT PAGE - De­bor­[email protected] MUM­BAI

Eti­had of­fers to guar­an­tee loans worth $150 mn to keep Jet op­er­a­tional

In an ap­par­ent res­cue act, Eti­had Air­ways of Abu Dhabi has of­fered to guar­an­tee loans worth $150 mil­lion that Jet Air­ways (In­dia) Ltd needs to keep the air­line op­er­a­tional, two peo­ple di­rectly aware of dis­cus­sions be­tween the two air­lines said.

The devel­op­ment fol­lows sev­eral rounds of talks be­tween the two sides which also in­cluded a po­ten­tial eq­uity in­fu­sion by Eti­had and adding a third In­dian part­ner, said the two peo­ple cited above. Both re­quested anonymity as the talks are pri­vate.

“As an im­me­di­ate mea­sure, Eti­had has agreed to stand as a guar­an­tor for any fresh loans to be raised by Jet Air­ways and has en­gaged at least two for­eign banks, one of them head­quar­tered in UK, to syn­di­cate the new loans,” said the first per­son. “Both sides feel that an eq­uity in­fu­sion by Eti­had which al­ready owns 24% in Jet Air­ways will take time and it may not be enough for Jet Air­ways to tide over its cur­rent fi­nan­cial trou­bles, given Jet’s de­pressed val­u­a­tions,” the per­son said. “In the given sit­u­a­tion, both sides which have been hav­ing dis­cus­sions for a while now, feel that this is the


Eti­had of­fers guar­an­tees for

The air­line wants In­dian banks to

In­dian banks yet to give

Jet and Eti­had best pos­si­ble so­lu­tion for now. Ac­cord­ing to in­dus­try es­ti­mates, Jet Air­ways will need close to $500 mil­lion be­tween now and April next year to meet re­pay­ment obli­ga­tions and man­age op­er­at­ing ex­penses.”

A spokesper­son for Eti­had Air­ways said it does not com­ment on ru­mour or spec­u­la­tion. An email sent to Jet Air­ways re­mained unan­swered un­til press time on Thurs­day.

Jet Air­ways is al­ready be­hind sched­ule on pay­ment of its air­craft lease rentals and has not paid staff salaries in full for the past few months. Since Jan­uary, shares

of Jet Air­ways

Eti­had in talks to rope in third part­ner to

to Eti­had on in­creas­ing lim­its

for an eq­uity in­fu­sion

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