Dubai: Etihad Airways said on Tuesday it is still working with stakeholders in India’s Jet Airways to ensure the insolvent airline becomes operational again.
The statement came as Indian media reported that Etihad may not invest in Jet any longer and that it is halting its investment plans. The Abu Dhabi-based carrier refused to comment on rumours or speculations about its plans, but confirmed it was still cooperating with Jet.
An Etihad spokesperson told Gulf News that in regards to looking for solutions for Jet, “Etihad continues to work directly with key stakeholders in India to help find a solution, which would ensure Jet’s return as a viable and competitive Indian airline, as it has been doing consistently for the past 15 months.”
Etihad already holds a 24 per cent stake in Jet, and said last month it was interested in reinvesting in the airline, subject to certain conditions.
It is still unclear exactly how (or if) Jet will return to operations again as the carrier continues to talk to its lenders about a capital injection and turnaround plan. For now, all its domestic and international flights have been suspended for around two months amid a liquidity crisis and an inability to pay the lease on its aircraft.
Jet Airways’ share prices, in response, have been tumbling, and on Tuesday fell to record lows on the back of reports that Etihad may not invest. Share prices ended at 112 rupees (Dh5.92).