A Boeing Co. 737 aircraft operated by Jet Airways India Ltd. taxies at Chhatrapati Shivaji International Airport in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Jet Airways, Etihad Say Jet Will Re-Emerge As Viable, Robust Airline

Jet Airways (India) Ltd. and Etihad Airways said they, along with key financial stakeholders, are working towards finalisation of bank-led provisional resolution plan for the debt-laden domestic airline.

In a joint statement issued today, the two carriers expressed confidence that once the plan is implemented, the Jet Airways would "re-emerge as a viable and robust airline to reclaim its rightful place as “airline of first choice for its customers".

The joint statement has been issued by Jet Airways Chairman Naresh Goyal and Etihad Airways Chief Executive Officer Tony Douglas.

Jet Airways has been grappling with financial woes and is looking to rejig debt as well as raise funds. Shareholders of the airline have approved conversion of loans into equity and other proposals last week.

State Bank of India said that no decision had been taken on moving the National Company Law Tribunal against Jet Airways.

On Sunday, officials associated with the lenders and key shareholders said SBI was considering moving the tribunal seeking insolvency proceedings against Jet Airways since it is running out of money for operations.

Against this backdrop, Jet Airways and Etihad Airways said that in the last year the aviation industry has experienced extraordinary headwinds and challenges.

Rising oil prices, a depreciating rupee and market saturation, among other things, have combined to critically impact the civil aviation sector as a whole, it added.

Abu Dhabi-based Etihad has 24 percent stake in Jet Airways, which has been in operations for over 25 years.

Also read: BQ Exclusive | Jet Airways Resolution Plan: How Lenders Are Hoping It Will Work

"Jet Airways, its principal shareholders including Etihad Airways, and key financial stakeholders are working towards the finalisation and subsequent implementation of the bank-led Provisional Resolution Plan, to ensure that the carrier emerges as a financially strong and resilient airline," it said.

Noting that any airline's financial health is subject to the ebb and flow of the economic environment in which it operates, the statement said a true measure of its strength and quality as a business are its operational metrics.

The statement also mentioned that Jet Airways' network load factor has risen to a high of 87 percent through December 2018 and January 2019 while flight cancellation rate in December stood at 0.2 percent—the lowest among Indian carriers.

Also read: Jet Airways’ Shareholders Approve Debt Recast Plan