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

Jet Airways Seeks $350-Million Soft Loan From Etihad

Jet Airways (India) Ltd. has sought a soft financing of $350 million from its investment partner Etihad Airways as it continues to hold discussions with the Gulf carrier to offload an additional stake, an airline source said on Thursday.

The Middle-Eastern airline has, however, offered to finance as much as $200 million, the source said, adding a final decision on the proposal is yet to be taken.

The Abu Dhabi-based Etihad had come to the rescue of the Naresh Goyal-controlled airline during the earlier downturn, too.

In 2013, it had acquired a 24 percent stake in Jet Airways for Rs 2,060 crore, besides extending low-interest loan of $150 million as well as purchasing a 50.1 percent stake in its loyalty programme JetPrivilege.

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When contacted, both Jet Airways and Etihad refused to comment on the deal.

With three back-to-back quarterly losses and a net debt of Rs 8,052 crore as on Sept. 30, the airline is working on ways to raise funds and reduce costs.

Last month, Jet Airways Chief Executive Officer Vinay Dube had said the airline was in active discussions with various investors to secure a sustainable financing.

The stock today ended the day 3.03 percent lower at Rs 278.20 apiece on the BSE, against a 1.59 percent decline in the benchmark.