Jet Airways, Etihad Airways say debt-ridden airline will re-emerge as viable, robust entity

Jet Airways has been grappling with financial woes and is looking to rejig debt as well as raise funds.

Published: 25th February 2019 08:37 PM  |   Last Updated: 25th February 2019 11:27 PM   |  A+A-

Jet Airways

Image of Jet Airways aircraft used for representation. (File photo | Reuters)

By PTI

NEW DELHI: Jet Airways and Etihad Airways Monday said they along with key financial stakeholders are working towards finalisation of bank-led provisional resolution plan for the debt-laden domestic airline.

In a joint statement, the two carriers expressed confidence that once the plan is implemented, the Jet Airways would "re-emerge as a viable and robust airline to reclaim its rightful place as an airline of the first choice for its customers".

The joint statement has been issued by Jet Chairman Naresh Goyal and Etihad Airways CEO Tony Douglas.

Jet Airways has been grappling with financial woes and is looking to rejig debt as well as raise funds.

Shareholders of the airline have approved the conversion of loans into equity and other proposals last week.

State Bank of India (SBI), on Monday, said no decision has been taken on moving the National Company Law Tribunal (NCLT) against Jet Airways.

ALSO READ: SBI says no decision taken on moving NCLT against Jet Airways

On Sunday, officials associated with the lenders and key shareholders said SBI was considering moving the tribunal seeking insolvency proceedings against Jet Airways since it is running out of money for operations.

Against this backdrop, Jet Airways and Etihad Airways said that in the last year the aviation industry has experienced extraordinary headwinds and challenges.

Rising oil prices, a depreciating rupee and market saturation, among other things, have combined to critically impact the civil aviation sector as a whole, it added.

ALSO READ: Working out mutually acceptable arrangement on salary dues: Jet Airways

"Some airlines have been hit harder than others; Jet Airways, India's premier full-service airline, being one of them," the joint statement said.

Abu Dhabi-based Etihad has 24 per cent stake in Jet Airways, which has been in operations for over 25 years.

"Jet Airways, its principal shareholders including Etihad Airways, and key financial stakeholders are working towards the finalisation and subsequent implementation of the Bank-led Provisional Resolution Plan (BLPRP), to ensure that the carrier emerges as a financially strong and resilient airline," it said.

Noting that any airline's financial health is subject to the ebb and flow of the economic environment in which it operates, the statement said a true measure of its strength and quality as a business are its operational metrics.

The statement also mentioned that Jet Airways' network load factor has risen to a high of 87 per cent through December 2018 and January 2019 while flight cancellation rate in December stood at 0.2 percent -- the lowest among Indian carriers.

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