Etihad Bids For Embattled Jet Airways, But Uncertainty Still Looms As Offer Subject To Conditions

Out of four qualified parties-TPG, Indigo Partners, Etihad Airways and NIIF to submit bids for the fallen Jet Airways, only Etihad Airways has submitted a proposal, the First Post reports.

While the bid to invest from the UAE based airline comes as a relief, the airline has released a statement with conditions.

Etihad, in a statement, said, “Etihad Airways today confirmed its interest to re-invest in a minority stake in India’s Jet Airways, subject to conditions. Etihad re-emphasizes that it cannot be expected to be the sole investor, and that, amongst other requirements, additional suitable investors would need to provide the majority of Jet Airways’ required recapitalization.”

In the past, Etihad had shown interest to invest in the airways but was denied a waiver to make an open offer to acquire shares in the open market which they had requested. This time, Etihad said that they would want to hold a minority stake (less the 50 per cent) in Jet Airways.

The bid and statement from Etihad Airways leave many questions unanswered and also shifts the burden of finding other investment partners on to lenders and investment bankers.