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Jet Airways shares jump 5% after report of loan from PNB; ahead of Etihad board meet

Shares of India’s major private sector airline Jet Airways jumped on Monday morning, after media reports said that the firm has received a fresh loan amounting to Rs 2,050 crore from Punjab National Bank. Jet Airways shares gained as much as 4.6% to hit the day’s high at Rs 254.50 on BSE this morning. Jet Airways has raised foreign currency term loans worth Rs 1,100 crore and a non-fund based credit facility of Rs 950 crore from PNB, Live mint reported citing loan documents.

 

Notably, at the Etihad board meeting scheduled today, the airline is likely to discuss Jet AIrways revival plan, CNBC TV18 reported. Etihad will consider fund infusion into Jet under bank-led provisional resolution plan and the final decision will be taken later today, reported the channel. Further, Etihad had already proposed investment of $100 million into Jet in last lenders meet and wants to cap its stake at 24.5 percent to avoid open offer, added the channel. Meanwhile, Commerce and Industry and Civil Aviation Minister Suresh Prabhu said that Government is closely” monitoring the situation” at Jet Airways even as negotiations to save the financially beleaguered airline continue. In an interview to IANS, Prabhu said that ‘appropriate action will be taken, if required’ in response to a query about requisite approvals that the proposed deal between bankers, management and shareholders including Etihad Airways might require from the ministry. Prabhu added that the government has set proper mechanisms to monitor airline’s adherence to flight schedules as passed by the DGCA.

Notably, FLY Leasing, the lessor for the beleaguered airline has said that it will take back the three grounded aircraft and redeploy them if the latter is unable to get its debt restructuring plan approved with the State Bank of India. Ireland headquartered aircraft leasing Investment Company Fly Leasing had grounded three aircraft, given to Jet Airways on lease, on Thursday.

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