Etihad Airways (EY, Abu Dhabi Int'l) has injected an additional USD35 million into Jet Airways (9W, Mumbai Int'l) by pre-purchasing tickets for redemption by members of the Jet Privilege loyalty programme, The Economic Times has reported.

The Emirati carrier owns 24% of the airline itself but controls the loyalty programme in which it has a 50.1% stake.

Eithad Airways did not confirm the transaction.

Meanwhile, the talks between Etihad Airways and Jet Airways regarding long-term capital investment and shareholding adjustment have hit a roadblock after the Securities and Exchange Board of India (SEBI) reportedly denied the Emirati carrier the waiver from the requirement to make an open offer. The Business Standard has reported that SEBI said that such a waiver could harm the interests of minority shareholders.

Etihad Airways earlier conditioned its capital injection, which would lead to an increase in the carrier's shareholding in Jet to 40%, from the waiver. Under the Indian law, once any given shareholder crosses a certain threshold, it is then required to make an open offer to all other shareholders.

Jet Airways also admitted that it had to ground four aircraft due to debts to lessors. The airline said in a Bombay Stock Exchange filing that it "regularly" engaged with the lessors and the Directorate General of Civil Aviation (DGCA) to provide them with updates regarding its financial situation.

Jet Airways currently has over INR80 billion rupees (USD1.16 billion) in debt. After the carrier defaulted on some of its loans on January 1, 2019, it has 180 days to come up with a detailed restructuring plan. On February 21, the airline will ask its shareholders to approve a scheme which includes the increase in Etihad Airways' stake, the loss of control by founder and Chairman Naresh Goyal, and a debt for equity swap with Indian banks.