Airlines Etihad to make pre-purchase payment to Jet Airways
- Jet Airways
Etihad Airways has announced, that it has developed a financial support plan for Indian carrier Jet Airways.
Jet Airways has been struggling with its finances due to rising jet fuel prices and a weak rupee. Now, Etihad Airways has stated, that it has proposed a restructuring and supportive plan for Jet Airways´ finances.
This plan, according to the Indian website livemint, has been approved by the majority shareholder. With the plan, Etihad is set to make a $35 million cash pre-purchase to Jet Airway´s frequent flyer programme Jet Privilege Private Ltd. (JPPL).
Currently, Etihad owns a 24% stake in Jet Airways India Ltd. and also owned the majority of the frequent flyer programme JPPL with a 50.01% stake. JPPL has confirmed this proposed transaction as well.
Nearly all Indian airlines experienced rising operating costs over the last year. This was mainly caused by a very weak rupee and further rising jet fuel prices. Indian airlines were affected by these circumstances, as the majority of payments are made with dollar.
Jet Airways is competing with various low-cost carriers such as SpiceJet, Indigo or GoAir. The airline commenced operations in May 1993 and currently flies with a fleet of 110 aircraft, including eight Airbus A330s, 14 ATR 72s, 78 Boeing 738s and 10 777s. Jet Airways serves 66 destinations in over 15 countries.
Etihad Airways is known for its investments in various airlines. The UAE based carrier has invested in Darwin, Air Berlin, Alitalia, Air Serbia, Air Seychelles, Aer Lingus, Virgin Australia and Air Italy. The carrier´s mainline fleet consists of 111 aircraft, including 22 Airbus A320s, 10 A321s, 24 A330s, 10 A380s, 24 Boeing 777s and 21 787 Dreamliners.
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