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Jet Airways Troubles Got Worse, Etihad Seeks To Fly Out Of Jet

न्यूज़ वर्ल्ड इंडिया | 0
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| March 20 , 2019 , 14:34 IST

Jet Airways’ financial problems took a turn for the worse on Tuesday with partner Etihad formally asking State Bank of India to purchase its stake in the airline and the pilots’ union threatening to strike work from April 1 if salary arrears are not cleared.

After a meeting between Etihad Airways CEO Tony Douglas and State Bank of India Chairman Rajnish Kumar, The Abu Dhabi-based airline has stated that it will not participate in the resolution plan for Jet Airways.  

“Etihad wants to exit Jet completely. Any decision now has to come from SBI,” a source said. Etihad CEO Tony Douglas is believed to have discussed this with SBI chairman Rajnish Kumar on Monday.

When contacted, Etihad repeated its earlier statement that it was working with Jet. “As a minority shareholder, Etihad is working closely with Indian lenders, the company and key stakeholders to facilitate a solution for Jet AirwaysNSE -5.06 %.”

Qatar Airways May Not Invest In Jet

Etihad’s decision to pull out and the collapse of the resolution plan put forward by jet chairman Naresh Goyal, bankers and the middle-eastern airline last month means the situation has become critical for the Indian carrier.

According to the draft memorandum of understanding, Etihad was to infuse Rs 1,600-1,900 crore for a stake of 24.9%, just below the 25% threshold that triggers an open offer.

ALSO READ:Etihad Ready For Capital Infusion In Jet Airways; Will own 24% Stake 

Lenders were to infuse another Rs 1,000 crore and take a 29.5% stake. About Rs 450 crore that the carrier owes to entities related to founder Naresh Goyal were to be converted into equity. Goyal, who has already infused Rs 250 crore, was to end up with a holding of 17.1% and not more than 22%.

Goyal is talking to Qatar airways, which is interested in the Indian market, for a possible investment. But the effort may be futile, people close to the discussions said. “Qatar airways would be interested in jet only with Goyal as a minority investor, a pre-condition put forward by Etihad too,” said a source in the know, who did not want to be identified.

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During months of February - March 2019 , aviation sector , both military and civil , have witnessed mishaps in the air. Military jets have met with accidents and so is the case with drones. Aviation industry through Boeing 737 aircrafts has been in the news for worrisome concerns. Two major mishaps in the air have killed some hundreds. The latest such mishap in the air involving Boeing 737 plane happened on 10 March 2019 when an Ethiopian Airlines flight crashed killing all 157 persons on board. These circumstances followed a rethinking in the aviation sector. Several countries across the world are reported to have grounded more Boeings. In this context , it may be apt to refer readers to this Vedic astrology writer’s predictive alerts for more care and appropriate strategy brought to public domain quite often since last year October 2018 , through social media plus submission of comments to a number of newspapers across the world. In order that readers refresh their memory , the same is being reproduced here :- “The following alert for more care and appropriate strategy in relation to aviation industry was made by this Vedic astrology writer over three months past in October 2018 :- ‘Astrologically speaking , aviation industry , world-wide and in India as well , could have focus for doing much to correct the systems or to innovate with strategies . Such aspects as skilled work-force or improved technology or know-how could also be in focus. Major air accidents at vulnerable locations due to some mechanical defect or oversight - negligence cannot be ruled out. This scenario can come up during coming last two months of present year 2018 and during new year 2019 , more so during February - March. So need is to be alert for more care and appropriate strategy’. Note : Dates 13 to 15 February , 21 to 23 February and 2 to 4 March in 2019 , 11-12 March or a day prior and after to these dates looks to be calling particular care”. Similar alerts were indicated in this writer’s article “ World Predictions 2019” underlining need of more care and appropriate strategy in relation to flying in the air were brought to the public domain in November -December 2018. Some of the countries like China , India , France , UK , US which have reportedly grounded the Boeing 737 were indicated in the aforesaid article for more such care and appropriate strategy. The events which have unfolded on the ground during the period covered by the alert suggest that the alert was precise and meaningful.