It is being widely reported that Jet Airways has agreed to most of the conditions set by shareholder Etihad Airways for a new memorandum of understanding (MoU) to save the troubled carrier. If finalised, the deal would boost Etihad’s stake from 24% to 40%, reducing chairman Naresh Goyal’s stake from 51% to 22%, while the lenders would convert some of their debt to equity, giving them the remaining stake in the airline, about 30%.
In January, Jet Airways said in a statement that it was working on “various cost cutting measures, debt reduction and funding options including infusion of capital, monetisation of assets including the Company’s stake in its loyalty program, in consultation with various key stakeholders”. The airline added that it was also in discussions with a consortium of Indian banks, led by State Bank of India (SBI), regarding a comprehensive resolution plan, which includes converting debt to equity.
None of the airlines have commented publicly but more details are expected to emerge soon following a board meeting held yesterday (Feb. 4).