Jet Airways to Get Cash Infusion from Etihad
Jennifer Billock December 05, 2018
Jet Airways, an airline that has been suffering major losses lately, recently assured its pilots that they will indeed have their salaries paid on time starting April 1, 2019—thanks to a much-needed fund infusion on behalf of Etihad Airways that’s expected to hit the airline around the middle of December.
Jet Airways has been struggling. The airline has taken heavy losses for the last three quarters. Since August, pilots and management haven’t been paid regularly and on time. The airline has also enacted some cost-cutting measures, like nixing free meals in economy on domestic flights and cutting some flight routes.
But a savior might be on the way for Jet. Etihad Airways is expected to increase their stake in the company, sending a cash infusion to Jet in mid-December. Jet’s founder, Naresh Goyal, assured pilots that starting in April, they will be paid regularly and on time. Also, any money currently owed to pilots or management will be paid in full before April.
“Etihad has always been keen on Boeing 737, 777 … now with the incoming long-range 737 MAX of Jet Airways, Etihad can connect to cities like Cairo, Tehran,” an anonymous source told CNBC. “There will be certain restructuring and downsizing of operations.”
The agreement with Etihad has not yet been publicly announced, and Jet Airways wouldn’t comment on it, calling it “speculation” at this point. There was previously discussion of a company called the Tata Group buying out Jet Airways for a stake sale, but that deal has reportedly since been canceled.
[Photo: Flickr/Cory Barnes]
