Business

Etihad Airways Invests $35 Million Into Debt-Laden Jet Airways

JAVED SAIFI | 0
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| October 6 , 2018 , 14:20 IST

Going through financial crises in operating the company, Jet Airways gets $35 million from UAE-based Etihad Airways, one of the largest stakeholders in the airline, media reported on Friday.

The investment in the debt laden airline is aimed at supporting and financially restructuring it, However, Etihad Airways have not disclosed the information that how it will help Jet Airways to overcome financial crises.

According to reports, after the investments of $35 million, Etihad Airways will more stake in the jet Airways. Currently, Etihad Airways has 24 percent stake in Jet Airways.

Also Read: Jet Airways CEO Vinay Dube Declines Stake Sale

As on June 2018, the debt ladden Jet Airways has a gross debt of Rs 8,620 crore with accumulated losses of Rs 10,878 crore.

The investment of $35 million is an indication that Etihad Airways is still confident of the airline and wants to protect its earlier investments in the company which was made in 2013.

In the first quarter of this year, Jet Airways got $300 million of liquidity.

In the month of August, Jet Airways had approached non-banking financial companies (NBFCs) to raise Funds. The airline was in talks with NBFCs to raise around Rs 1,500-2,000 crore against its forward sales.

In order to procure more funds, the airline had also approached the State Bank of India (SBI).