Reiterating that it alone can't bring in all the capital needed to revive Jet Airways, Etihad Airways said it has offered to acquire a minority stake in the troubled cash-strapped Indian airline.
Responding to queries from Moneycontrol, the Abu Dhabi-based airline said, "Etihad has confirmed its interest to re-invest in a minority stake in Jet Airways, subject to conditions." The airline at present holds 24 percent stake in the Indian airline.
Etihad Airways is the only shortlisted bidder to have submitted its bid, the deadline for which expired on May 10. Other shortlisted bidders included TPG Capital, Indigo Partners and National Investment and Infrastructure Fund (NIIF).
Sources said the airline has offered to invest Rs 1,700 crore. That won't be enough to meet Jet Airways' repayments, which owes banks Rs 8,000 crore, and thousands of crores in pending payments to lessors, vendors and employees.
But Etihad said it alone can't be expected to meet the obligations. "Etihad re-emphasises that it cannot be expected to be the sole investor and that additional suitable investors would need to provide majority of Jet Airways' required recapitalisation," the airline said.
Etihad reiterated that it remains focused on the Indian market. "India is one of the fastest-growing air transport markets in the world, and a significant economic partner of UAE. Etihad has been working consistently with key stakeholders in India over the past 15 months to help find a solution which would ensure Jet Airways' return as a viable and competitive Indian airline, and continues to do so," it added.
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