Bid Submitted by Etihad Airways for Cash-Starved Jet Airways

Etihad Airways of the Gulf country has bid for the temporary closed airline Jet Airways.
Bid Submitted by Etihad Airways for Cash-Starved Jet Airways

 Etihad Airways of the Gulf country has submitted a financial bid for the acquisition of Jet Airways, a struggling airline company. Apart from this, there have been financial bids received by some non-invited parties. According to the lenders, financial bids have been received from Etihad Airways and some non-invited parties for the acquisition of Jet Airways. Let us tell you that Etihad Airline has more than 20 percent investment in Jet Airways.

Under the leadership of State Bank of India, the 26 lenders' committee had Expression of Interest (EOI) for Jet Airways between April 8 and 12. There were four initial bids for this. The committee's jets hold 51 percent stake. The lenders' committee has offered to sell the stake of 31.2% to 75% of the airline's company. The last day of filing a financial bid from eligible bidders was Friday. It may be said that this is the beginning of the acquisition of Jet Airways.

With the joining of Etihad airline's bidding process, it has prompted the expectations of temporarily closed jet airways. Indeed, Etihad has already invested in Jet Airways. Although Etihad says that we do not want to be the chief investor of the airline. Among the other requirements, for the required re-cap of the jet and suitable investors will be needed. At present, banks owe Rs 8,000 crore on Jet Airways. Due to the tightening of the money, the employees of Jet Airways could not get the salaries. At the same time, more than 400 slots of Jet Airways have been given to other airline companies.

Meanwhile, there are allegations of violation of FDI rules on Jet Airways. According to the media report, the Enforcement Directorate (ED) is examining an agreement worth Rs 900 crore for Jet Airways and Etihad Airways in 2014. It is being investigated by the ED that it has not been violated in the rules related to foreign exchange.

Related Stories

No stories found.