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Gulf airline Etihad may infuse around Rs 1,600-1,900 crore into Jet Airways

Under the proposed deal, Goyal would step down as chairman and director of Jet Airways but can nominate two persons to the airline's board.

twitter-logoPTI | March 12, 2019 | Updated 08:59 IST
Gulf airline Etihad may infuse around Rs 1,600-1,900 crore into Jet Airways

Gulf carrier Etihad Airways is likely to infuse around Rs 1,600-1,900 crore into cash-strapped Jet Airways under a proposed deal wherein Naresh Goyal would step down as chairman of the domestic carrier, according to sources.

Jet Airways, a full-service airline, has been grappling with acute financial crunch that has also forced it to ground many planes as well as delay payment of salaries and loan repayments.

Also read: Cash-strapped Jet Airways defaults on foreign loan repayment

Under the proposed deal, Goyal would step down as chairman and director of Jet Airways but can nominate two persons to the airline's board. Goyal would be designated as chairman emeritus while his son Nivaan Goyal would be offered an appropriate executive position subject to certain conditions, the sources said.

By infusing Rs 1,600-1,900 crore, Etihad's stake in Jet Airways would rise to 24.9 per cent, the sources said citing a memorandum of understanding between the two airlines.

Currently, Etihad has 24 per cent stake in the domestic airline.

Besides, a new investor is likely to pump in around Rs 1,600-1,900 crore into the domestic carrier. Lenders are expected to infuse Rs 1,000 crore wherein their shareholding would be around 29.5 per cent, as per the sources.

In the revamped board, there would be a total of 12 members, including two nominees each of Goyal and Etihad, they added.

Also read: Jet Airways expects funds over Rs 3,000 crore post debt rejig, Etihad investment

Also read: Jet Airways pledges assets to borrow Rs 225 crore from SBI: Report

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