SBI starts looking for other potential buyers for Jet Airways: Media reports

Etihad has formally asked SBI to purchase its entire 24% stake even as the government held an emergency meeting on Tuesday to discuss the unfolding crisis at the cash-strapped Indian airline.

Mar 20, 2019 08:03 IST India Infoline News Service

Jet-Airways3
State Bank of India (SBI) started scouting for other potential buyers for debt ridden Jet Airways as a meeting with Etihad remained inconclusive.

As per media reports, Etihad has formally asked SBI to purchase its entire 24% stake even as the government held an emergency meeting on Tuesday to discuss the unfolding crisis at the cash-strapped Indian airline.

The United Arab Emirates airline company tabled the exit proposal and asked SBI to buy 24% stake at Rs150/share. The airline company has also made a request to the bank to buy Etihad’s 50.1% stake in Jet Privilege Pvt. Ltd.

Additionally, the carrier had also asked SBI to take over the guarantee provided by Etihad for an Rs1,000cr external commercial borrowing facility raised by Jet Airways from HSBC Bank.

Meanwhile, as per PTI report, pilots of Jet Airways have threatened to go on strike from April 1 unless salary dues were paid by March-end.
The civil aviation ministry, which held an emergency meeting to discuss the crisis at the airline, has asked Jet Airways to avoid last-minute flight changes, keep its planes airworthy and take care of customers affected by flight cancellations. The cash strapped airline has only 41 planes currently, down from its original fleet of 119 planes.

Jet Airways (India) Ltd's share price ended at Rs229.05, down by Rs7.95 or 3.35%, from its previous close of Rs237 on the BSE.

The scrip opened at Rs235.10 and touched a high and low of Rs236.40 and Rs224, respectively. A total of, 1,52,97,898 (NSE+BSE) shares have traded on the counter. The current market cap of the company is Rs2,602.01cr.

Related Story