Etihad said to infuse ₹1,600-1,900 crore in Jet Airways

New Delhi: Etihad Airways PJSC is likely to infuse around ₹1,600-1,900 crore into cash-strapped Jet Airways (India) Ltd under a proposed deal wherein Naresh Goyal would step down as chairman of the domestic carrier, according to people aware of the development.

Jet Airways, a full-service airline, has been grappling with acute financial crunch that has also forced it to ground many planes as well as delay payment of salaries and loan repayments.

Under the proposed Jet-Etihad deal, Goyal would step down as chairman of Jet Airways but can nominate two persons to the airline's board. Goyal would be designated as chairman emeritus while his son Nivaan Goyal would be offered an appropriate executive position subject to certain conditions, the people said, requesting anonymity.

By infusing ₹1,600-1,900 crore, Etihad's stake in Jet Airways would rise to 24.9%, the people said, citing a memorandum of understanding between the two airlines.

Etihad, at present, has 24% stake in Jet Airlines.

Besides, a new investor is likely to pump in around ₹1,600-1,900 crore into the domestic carrier. Lenders are expected to infuse ₹1,000 crore wherein their shareholding would be around 29.5%, the people said.

In the revamped board, there would be a total of 12 members, including two nominees each of Goyal and Etihad, they added.

On Monday, Jet Airways shares rose 2.04% to ₹248.05 apiece on the BSE while the benchmark Sensex gained 1.04% to end the day at 37,054.10 points.