Jet Airways nears funding deal with Etihad

[BENGALURU] Debt-laden Indian carrier Jet Airways Ltd is close to finalising a deal under which shareholder Etihad Airways will inject fresh funds, news channel CNBC-TV18 reported late on Tuesday, citing sources.

Jet founder and majority shareholder Naresh Goyal has assured the airline's pilot union that the funding, which will likely result in route restructuring and more flights to Abu Dhabi, could take place as early as mid-December, the channel said.

Mr Goyal has also assured pilots that there will be no delays in salary payments from April 1, according to the channel.

Jet Airways, which is struggling to cut costs and stay afloat, has delayed salary payments to employees and is trying to raise money by selling a stake in the airline and its loyalty programme. The airline is cutting flights on some routes and increasing frequencies on others to boost profits.

CNBC-TV18 also said that Jet's talks with conglomerate Tata Group for a rescue deal have hit a road block over demands that JetLite, its low-cost airline, be shutdown.

Neither Jet nor Etihad immediately responded to Reuters' emails seeking comment.

REUTERS