Jet Airways (JAI, Mumbai International) has turned to its part-owner Etihad Airways (EY, Abu Dhabi International) for new capital and is reportedly in talks over a fresh equity injection and loans which would increase the Emirati carrier's holding to 49%, The Economic Times has reported.
Currently, Etihad holds a 24% stake in the cash-strapped Indian carrier. If the deal materialises, the Emirati airline would become Jet's largest single shareholder, while the stakes held by founders Naresh and Anita Goyal could dilute from the current 51% to just 15%.
In a stock market filing, Jet Airways said the reports about the potential new investment from Etihad Airways were speculative.
"The company continues to be in active discussions with various investors to secure sustainable financing to navigate through the current headwinds and create long term growth," Jet Airways said.
Separately, the Financial Chronicle has reported that talks with Tata Sons, an Indian conglomerate earlier deemed to be the frontrunner for Jet Airways, had stalled over JetLite (Delhi International), the former low-cost carrier subsidiary of Jet Airways now turned into a full service carrier operating alongside Jet.
Reportedly, Tata Sons are seeking non-competition clause given their involvement in AirAsia India (Bengaluru International), where they hold a 49% stake. Naresh Goyal is, however, unwilling to cede full control of the group he founded and grew over time.
On the other hand, the Economic Times has recently reported that Tata Sons might be planning to divest from the LCC, where they are a joint-venture partner with AirAsia Group. Tata Sons commented on neither of the rumours.
Tata Sons also controls a 51% stake in Vistara (UK, Delhi International), a full service carrier established in partnership with Singapore Airlines Group.
