Jet’s Goyal seeks inmmediate funding from Etihad

Mumbai, March 11 (IANS) Cash-strapped Jet Airways' outgoing Chairman Naresh Goyal has sought an immediate funding of Rs 750 crore from the equity partner Etihad Airways.

In a letter on March 8, written to Tony Douglas the Group CEO, Etihad Aviation Group, Goyal has has sought the funding by early next week.

"As you are no doubt aware, Jet Airways is in a very precarious position, with more than 50 aircraft grounded and increasing arrears of vendors and salaries which makes the need for interim funding all the more imperative," the letter accessed by IANS said.

With regular grounding of aircraft, sources said close to 50 per cent of airline's fleet is not operational. Analysts said the situation is fast moving on the path taken by now defunct Kingfisher Airline.

"I now look forward to your support and cooperation in saving the airline by an urgent fund infusion by way of interim funding support of Rs 750 crore early next week, so that a matching contribution from the banks is also disbursed, as envisaged in the Resolution Plan," it said.

To move things forward, Jet Airways has secured the approval from the the Ministry of Civil Aviation for the Pledge of Jet Airways' shares in Jet Privilege Pvt Ltd (JPPL) to secure the interim funding, it noted.

Jet Airways holds 49.9 per cent stake in JPPL, while the majority is with Etihad.

Etihad Airways' board is meeting in Abu Dhabi to discuss the resolution plan for Jet Airways. The Gulf-based carrier holds 24 per cent stake in the Indian airline.

The Jet Airways board had on February 14 approved a resolution plan, as per which the lenders, led by the State Bank of India (SBI) would become the largest shareholders in the airline by converting the airline's debt into equity at a nominal price of Re 1.

The bailout plan was approved by the shareholders on February 21 .