Big boost for Jet Airways! $900 mn turnaround plan in offing, says report

Debt-laden Jet Airways Ltd`s lenders proposed a $900 million resolution plan, the Mint daily reported on Wednesday, citing sources familiar with the matter.  The financial woes of Jet Airways, India`s biggest full-service carrier by market share, worsened in 2018 amid rising oil prices and intense pricing competition in the Indian skies.  The resolution plan was shared with the airline`s lessors and vendors at a meeting chaired by State Bank of India and attended by the airline`s senior management, including chairman Naresh Goyal and a representative of Etihad Airways PJSC, the report added. 

Goyal and Etihad are likely to infuse $450 million together in Jet, while Indian lenders will restructure another $450 million of its debt, Mint quoted sources as saying. If the plan is approved by all stakeholders, it will result in Naresh Goyal`s stake falling below the current 51 percent, the report added.

The airline, part owned by Etihad Airways, was in talks with the Abu Dhabi-based carrier to infuse more equity, but any money would be conditional on Jet`s founder Naresh Goyal ceding control, sources have told Reuters.

Last week, Jet said it had defaulted on debt payment to a consortium of Indian banks, prompting ratings agency ICRA to downgrade the carrier. Jet Airways and State Bank of India (SBI) did not immediately respond to Reuters` request for comment.