Private carrier Jet Airways on Wednesday said the State Bank of India, along with its other lenders and stakeholders, was working on a comprehensive plan to make it profitable again. The carrier said several options, including equity infusion by stakeholders and changes in the company’s board of directors, were being considered, PTI reported.
Jet Airways has posted losses of over Rs 1,000 crore for three consecutive quarters since March 2018.
The carrier defaulted on loan repayments to banks on December 31. A report on Sunday said the airline’s founder Naresh Goyal is likely to step down as chairperson this week. It added that Etihad Airways, which holds 24% stake in the airline, will increase its share to 49%.
“SBI in consultation with the other members of the consortium and the other stakeholders has been working on a comprehensive resolution plan towards a turnaround of the company for its sustained growth and restoration of financial health,” Jet Airways said in a statement.
Meanwhile, Civil Aviation Secretary RN Choubey expressed hope that Jet Airways, Etihad Airways and lenders would agree on a “common plan” to turn around the company.
Asked about reports that Etihad Airways may seek to make an open offer to Jet Airways, Choubey said the companies will have to reach out to market regulator Securities and Exchange Board of India. “That is something between Jet Airways, Etihad and SEBI,” he added. “The government has no direct role in this.” In an open offer, a shareholder is given the opportunity to purchase stocks at a price lower than the current market price.