Naresh Goyal, the founder of the cash-strapped Jet Airways has sought an urgent funding from the its foreign partner Etihad Airways of ₹750 crore, citing “the very precarious” condition of airline which has forced the airline to ground about 40% of its fleet. The airline seems to be in a downward spiral, due to lack of liquidity and rising debt.
In his letter to Etihad Airways Chief executives Tony Douglas, Naresh Goyal said that Jet Airways has also got a yes nod from aviation ministry to pledge its shares in JetPrivelege for securing the interim funding. The airline holds 49.9% stake in the loyalty programme while the majority stake is of its foreign partner Etihad Airways.
“I now look forward to your support and cooperation in saving the airline by an urgent fund infusion of Rs 750 crore by early next week, so that a matching contribution from banks is also disbursed, as per the resolution plan,” Goyal said in the letter.
“Any conditions precedent to the ₹750 crore infusion by Etihad Airways may please be taken up with the banks and settled bilaterally with them, so that the much-needed funding is made available to Jet Airways early next week,” he said.
Jet Airways is has been going through worst financial crises of its history and has the situation has got so worse now that about 40% of its fleet consisting of 123 airplanes has been grounded owing to non-payment of rental dues to lessor. Along with this the airline also needs cash to pay salaries to its employees and Pilots. Thus the airline is looking for various ways of raising funds which includes loans, capital from rights issuance and a debt resolution plan from SBI led consortium.