The board of Etihad Aviation Group did not take a decision on the proposed rescue capital injection into Jet Airways (9W, Mumbai Int'l) during its meeting on March 12, 2019, Business Standard has reported. Last week, Chairman, CEO, and founder Naresh Goyal pleaded in a letter for immediate financial assistance.

Business Today has reported that in a letter dated March 8, Goyal asked Etihad for an injection of INR7.5 billion rupees (USD108 million) "by early next week". He wrote that the airline was in a "very precarious" position and any further delays with the rescue plan could even lead to its complete grounding.

On March 12, Jet Airways said in a stock market filing that it had to ground a further four aircraft due to non-payment of amounts outstanding to lessors, bringing the total number of aircraft on the ground for this reason to thirty-two, almost a third of the carrier's entire fleet of 108 aircraft.

However, in a letter to Etihad Goyal wrote about "more than fifty" grounded aircraft, whereas the ch-aviation fleets module shows forty-four units to be inactive, including all of its five sB737-8s that were already on the ground prior to the type being temporarily grounded for safety concerns.

A day earlier, the airline said it defaulted on unspecified external debt.

Jet Airways denied reports circulated by the Indian media which said that it secured a INR20.5 billion rupee (USD294 million) loan from Punjab National Bank. It clarified that it had an existing long-term loan facility of USD300 million with the bank.

According to the newest draft of the rescue plan, as reported by The Economic Times, Jet Airways would receive a total capital injection of some INR40 billion rupees (USD574 million). Etihad Airways and Abu Dhabi-backed National Investment and Infrastructure Fund (NIIF) would invest INR19 billion rupees (USD273 million) each, including the interim bridge financing of INR7.5 billion rupees provided by Etihad.

The deal would also include an equity-for-debt transaction with a consortium of lenders. The carrier will pledge its 50.1% stake in its loyalty programme JetPrivilege to the investors (Etihad holds the remaining shares in the programme). Goyal would also invest an additional INR4.5 billion rupees (USD65 million) but will see his stake diluted to 17.1% and capped at 22% going forward. He would also be barred from executive roles, although he would remain Chairman Emeritus through 2025.

Other lenders - predominantly banks - would inject INR10 billion rupees (USD144 million) which, together with the equity-for-debt swap, would grant them a 29.5% stake. Etihad would hold a 24.9% stake, and NIIF - 20%.