Jet Airways Crisis |
The crisis for the indian carrier Jet airways is far from over. After the meeting of the Abu dhabi based Etihad airways, who also owns 24% stake in Jet went unsuccessful with the State Bank of India. The meeting was to discuss the issues in the rescue plan for Jet Airways. Etihad has refused to agree on the contours of the deal. According to sources, The CEO of Etihad Airways flew down to Mumbai for the meeting and informed a consortium of lenders, led by SBI, that it would not participate in the rights issue or infuse fresh funds under the current terms and conditions of the resolution plan. Lenders have told Jet`s strategic partner Etihad Airways that if it is unable to accept the terms to revive the troubled airline, it should exit so that a new investor can be brought in. Jet has also cancelled all flights to Etihad`s hub in Abu Dhabi, said sources. The destination became Jet`s hub after it sold stake to the Gulf carrier in 2013. Bankers and the Etihad management have put forth their views just ahead of a March 18 deadline cited by Jet founder chairman Naresh Goyal to employees for a decisive update on the revival plan.
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