Shares of Jet Airways rise after accepting Etihad bailout conditions

New Delhi: Following reports saying Jet Airways Ltd agreed to most of the bailout terms set by its partner Etihad, shares of the debt-laden domestic carrier rose by 18.57 percent to Rs 281.50 apiece on Bombay Stock Exchange (BSE). In the coming days, both the airlines are likely to sign a memorandum of understanding (MoU), which would result in Jet Airways founder Chairman Naresh Goyal stepping down from the board of directors, a report says.

This morning at 09:53 am, the stock traded 11.29 percent higher at Rs 264.20 each on BSE, while the benchmark S&P BSE Sensex was 139 points up at 36,396 levels. Etihad, offering a lifeline to the airline, is likely to see its stake rise to 40 percent from 24 percent.

Next steps to be decided

At the Jet board meeting on February 14, the legal formalities around the deal and the next step will be decided. This will be followed by a special general meeting on February 21, the report said.

Close to finding a solution

Jet Airways' CEO Vinay Dube said the company is not far from finding a solution to the airline's financial crisis, having sought their support.

"Our chairman, the board of directors and your management team are working hard on a balance sheet transaction that will help us eliminate our current challenges. In fact, the airline's key stakeholders are actively engaged towards finalisation of the resolution plan. We are very close and I ask for your continued patience," Dube wrote in an email to staff.