A mix of financial and strategic mistakes combined with poor expectations of the management are the reasons for the downfall of Indian airlines. For Jet, the deathly potion was even more toxic on account of the bitter squabbles between promoter Naresh Goyal and strategic partner Etihad Airways.
The daily service to the two cities will mark the seventh and eighth Indian destinations for the Airways, Akbar Al Baker, Chief Executive of Qatar Airways was quoted as saying by the Gulf News.
Etihad said it declined to lodge an EoI to reinvest in Jet Airways because of unresolved issues concerning the airline's liabilities.
She is scheduled to reach Dhaka at 4 pm on Monday.
Etihad Airways will now fly daily between Delhi and Abu Dhabi and will launch a new service between Abu Dhabi and Kochi from Monday.
UAE carrier Etihad Crystal Cargo on Wednesday launched its weekly freighter services from Delhi, after connecting Mumbai and Chennai earlier this year.
Likely to rake up the issue of open offer exemption.
Jet Airways Ltd said on Friday it made a profit in the June quarter compared to a loss in the year-ago period, helped by a drop in fuel expenses.
Alleging that something was fishy in the Jet-Etihad deal, BJP today demanded that the Prime Minister's Office should come clean on the issue.
The process of getting a new promoter on board is likely to take another two to three months and once that happens, the banks would offload their stakes.
Naresh Goyal-led Jet has also changed the shareholders agreement and amended the investment agreement and the articles of association, as suggested by the Foreign Investment Promotion Board, headed by DEA Secretary Arvind Mayaram, official sources said.
Jet Airways Chairman Naresh Goyal will purchase over one per cent stake in the airline from another promoter entity, Tail Winds, for up to Rs 45 crore (Rs 450 million).
Etihad Airways, the national airline of the United Arab Emirates, has launched its daily services to Mumbai and plans to start thrice-a-week flights from Abu Dhabi to Delhi from December.
The Indian government allowed foreign airlines to buy up to 49 per cent stakes in Indian carriers in September 2012.
As the majority of Pakistani airspace has remained closed for Indian airlines since the Balakot strike on February 26, the decision to avoid affected Iranian airspace on Saturday is going to further disturb the routes of their international flights towards middle-eastern and European countries, and the US.
The airline has already decided to lease out an A330 to Etihad and plans to lease out two more this year.
This follows the Union Cabinet approving enhanced traffic rights between India and Abu Dhabi.
Jet Airways remains the number one airline serving foreign routes.
Jet Airways' Acting CEO and Chief Financial Officer Ravishankar Gopalakrishnan has resigned, sources said on Tuesday, the latest in the high-profile exit from the private carrier.
On September 6, the airline informed senior employees that their salaries would be paid in two instalments till November.
Right from the early days of liberalisation, there have been political controversies surrounding several cases that landed on the FIPB table and which, in turn, have often led to court battles.
Jet has come under regulatory scrutiny twice this year.
Etihad earns about 23 per cent of its passenger revenue from code-share and equity partners, and this would increase after its tie-up with Jet.
The top-level exodus at Naresh Goyal-promoted Jet Airways continued on Friday, with chief financial officer and acting CEO Ravishankar Gopalakrishnan quitting.
SBI chairman Rajnish Kumar said Naresh Goyal would be eligible to bid for the airline when the lenders auction it next month.
Currently, Etihad has 24 per cent shareholding in Jet Airways
A resurgent SpiceJet is spreading its wings and Vistara is set to challenge Jet on long-haul routes in the coming years.
The summit would be held from November 4-6.
Both lenders and Etihad are not comfortable with the entities holding stake in Jet as they have no proven credentials in running a big business
Options include fresh capital infusion by the management and/or some new investors.
The unions opposed any move to force banks to lend more money to the airline, saying Naresh Goyal is still the promoter and major shareholder with 51 per cent stake and it is his headache to run the company or sell it to someone.
While media reports suggested that Tata-Singapore Airlines is looking at an all-stock merger of Jet, Tatas, in a statement said, discussions to take over Jet Airways have been preliminary and no proposal has been made
The Boeing website lists the price of a Boeing 737-800 aircraft at $90.5 million.
The resolution plan has to be put to work this month itself. Jet has a debt of over Rs 8,000 crore and needs to make repayments of up to Rs 1,700 crore by the end of March.
The IRP has admitted 33 claims from banks worth Rs 8,462 crore, and is verifying Rs 15,044-crore claims from operational creditors and staff.
The airline is sitting on a debt pile of over Rs 8,200 crore and has defaulted thrice since January, including on some forex debt.
The airline has proposed to raise authorised share capital to Rs 2,200 crore. This would comprise Rs 680 crore of equity capital and Rs 1,520 crore of preference share capital.
Schuldschein is an alternative way to raise funds instead of loans or bonds and deals can run from $12 million to more than $1.13 billion. These instruments include tranches of different maturities and currencies and investors are spread across the world.
The airline has been defaulting on salaries for some time, making partial payments in some cases or not paying at all, as it continues to lose money mainly in domestic routes where it can't raise fares facing competition from low-cost airlines.
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