Etihad chief executive Tony Douglas on Monday met SBI chairman Rajnish Kumar in Mumbai to discuss the Jet Airways bailout plan prepared by a group of lenders.
“Tony Douglas tabled the exit proposal yesterday (18 March). (He has) asked SBI to buy Etihad’s 24% stake at ₹150 per share, or about ₹400 crore (for the full stake)," said the person cited above, requesting anonymity.
The Abu Dhabi-based airline’s stake in Jet Privilege has an estimated value of $600 million, the person said, adding that the carrier had also asked SBI to take over the guarantee provided by Etihad for a ₹1,000 crore external commercial borrowing facility raised by Jet Airways from HSBC Bank, Abu Dhabi, a few years ago. The airline founded by Naresh Goyal recently defaulted on repaying this loan facility.
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 airline has only 41 planes currently, down from its original fleet of 119 planes.
“It is a dynamic situation and there may be further (fleet) attrition in the coming weeks," the ministry said in a statement. Jet Airways has scheduled 985 weekly flights, including 382 international flights, with the current fleet. The Directorate General of Civil Aviation (DGCA) was closely monitoring the situation, the statement said.