Jet Airways likely to get $35 million emergency funding from Etihad, says report

The lenders to Jet Airways and Etihad are discussing an ‘emergency funding’ of around $35 million that the Gulf airline would release to the cash-strapped airline, The Economic Times reported citing sources.

The amount that is being considered will last for the next few weeks during which Etihad, along with banks, plans to approach market regulator Sebi on the pricing for fresh equity, the report said.

“The situation is still fluid. No firm decision has been reached on the funding or its structure. But the reality is that the airline needs money at the earliest. If it goes south, everyone will have to pay — 22,000 employees, banks, promoters, minority shareholders and passengers,” a person familiar with the negotiations told the newspaper.

According to the report, Etihad’s legal counsel has advised Jet Airways that the RBI’s revised framework on the resolution of stressed assets provides some relaxations, which could enable Etihad to chip in equity.