Etihad Airways has recently proposed a financial restructuring and support plan for Jet Airways. Currently, the flag carrier of United Arab Emirates owns 24 per cent stake in Jet Airways India Ltd.
Under this proposed plan, Etihad will give Jet Airways $35 million in a cash pre-purchase for Jet Airways’ frequent flyer program – Jet Privilege, 50. 1 per cent of which is already owned by Etihad Airways.
The official statement reads: “Etihad Airways confirms it proposed a financial restructuring and support plan for Jet Airways that was approved by its majority shareholder. This plan includes a $35 million cash pre-purchase payment to Jet Airways by Jet Privilege, which is majority-owned by Etihad Airways.”
Currently, Jet Airways is facing a cash crunch problem, and an investment like this may help the full-service carrier in managing its operations and commitments such as paying staff salary. etihad.com, jetairways.com