Published on Tuesday, May 14, 2019

Etihad emerges as only bidder for Jet Airways

Etihad has made a bid for grounded Jet Airways but is not the white knight the airline and its lenders were hoping for.

Etihad Airways will only consolidate with a minority stake which is non-binding and subject to range of conditions.

Etihad already owns 24% of the cash-strapped airline and is seeking a commitment from its lenders on additional loans.

Three firms including India's National Investment and Infrastructure Fund had filed expressions of interest last week but never followed through by submitting bids before the May 10 deadline.

That leaves Etihad alone and able to strike a hard bargain on its own terms. However, it has stated it is not willing to risk investing in a majority share.

It will pump a maximum of $240 million into the airline, which is just a fraction of what it needs to get off the ground again.

At least two other parties have reached out to Etihad for a potential joint venture.

These include AdiGro Aviation.

"We are very keen to work with Etihad. It's a key partner for the airline. If Etihad wants to continue with Jet Airways, we would love to partner with them," AdiGro founder Sanjay Viswanathan told Indian news outlet Moneycontrol.

Under the initial terms by principle lender State Bank of India, bids were offered for as much as 75% of the carrier.

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