Etihad may infuse Rs 1,600-1,900 cr in Jet Airways, say sources

Gulf carrier Etihad Airways is likely to infuse around Rs 1,600-1,900 crore into cash-strapped Jet Airways under a proposed deal wherein Naresh Goyal would step down as chairman of the domestic carrier, according to sources.

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 deal, Goyal would step down as chairman and director 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 sources said.

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

Currently, Etihad has 24 per cent stake in the domestic airline.

Besides, a new investor is likely to pump in around Rs 1,600-1,900 crore into the domestic carrier. Lenders are expected to infuse Rs 1,000 crore wherein their shareholding would be around 29.5 per cent, as per the sources.

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