Didn't reinvest in Jet due to unresolved issues: Etihad
- By NewsOnFloor Staff
- Aug 12, 2019
- 204 views
Mumbai, Aug 12 (IANS) Abu Dhabi-based Etihad Airways on Monday said that it decided not to lodge an expression of interest (EoI) to reinvest in Jet Airways, as the Indian passenger carrier had "unresolved liability issues".
In 2013, Etihad had acquired a 24 per cent stake in Jet.
"Since then, Etihad has consistently and constructively sought and advanced solutions to help resolve Jet's issues," the airline said in a statement.
"But as a minority shareholder, Etihad has had limited capacity to secure required changes."
Earlier this year, Etihad presented a conditional expression of interest to reinvest in Jet as a minority stakeholder, with an agreed partner, but this did not materialise.
The airline added that its decision not to lodge an EoI, does not affect Etihad's "continued commitment" to India.
Etihad flies between Abu Dhabi and 10 destinations in India, and "is continually increasing the frequency of its flights, the size of its aircraft, the quality of its product and the international route connections it offers beyond its hub in Abu Dhabi".
Currently, Jet is under the NCLT process, under which a commitee of creditors has invited EoI from potential bidders.
If a bid is approved by a majority of CoC members, only then the resolution can move ahead. A formal concurrence from the NCLT will be, though, required.
Source : ians