There seems no end in sight to the troubles of Jet Airways, with major shareholder Etihad officially communicating to the State Bank of India (SBI) its request for the latter to purchase its stake in the ailing airline, reports The Economic Times. The pilots’ union has also threatened to launch a strike from 1 April if their salary arrears are not cleared by Jet.
Etihad, which is based in Abu Dhabi, owns around 24 per cent of Jet’s shares. It has reluctantly participated in talks to resolve the current financial crisis, which has hit the airline.
It is reported that Etihad wants to transfer its stake, as well as its liabilities to SBI. Also, the Gulf-based airline has offered its 50.1 per cent shareholding in Jet Privilege to SBI.
Etihad has not officially commented on this new plan to exit Jet. It reiterated its previous statement, saying, “As a minority shareholder, Etihad is working closely with Indian lenders, the company and key stakeholders to facilitate a solution for Jet Airways.”
Another worrying development for Jet is that the union representing domestic pilots of the airline, the National Aviator’s Guild, has threatened to stop flying from 1 April onwards if their salary dues are not honoured within the month of March. Close to 1,000 pilots are represented by the entity.
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