Jet Airways India is in a precarious situation and needs interim funding support of Rs 750 crore from Etihad Airways as early as this week, Naresh Goyal has told Etihad group chief executive officer Tony Douglas.

"It must be reiterated that non-receipt of interim funding will be severely delirious to the future of the airline, leading to its grounding, which is something all of us, including the banks and other stakeholders, have worked assiduously to avoid over the last few months,” Goyal has written to Douglas in a letter dated March 8.

He said the airline has over 50 planes on the ground and increasing arrears of vendors and salaries to employees makes the need for interim funding all the more imperative.

Goyal’s comments on groundings are in stark contrast to the Mumbai-based airline’s exchange filings which maintain that only 28 planes of the airline are not in operations.

The letter was written days before the board meeting of Etihad Airways. Etihad board is expected to meet today and set the tone for the fund infusion path of Jet Airways.

Stressing on the fact that the airline will only receive funds from banks after Etihad lends a hand, Goyal has told Douglas to take up any condition, precedent to the Rs 750-crore infusion, with the banks so that the “much-needed funding” is made available to the airline.

"I now look forward to your support and cooperation in saving the airline by an urgent fund infusion by way of interim funding support of Rs 750 crore early next week, so that a matching contribution from the banks is also disbursed, as envisaged in the resolution plan,” Goyal said.

As part of funding infusion efforts, the airline has also secured the approval of the civil aviation ministry for the pledge of Jet Airways shares in Jet loyalty programme, Jet Privilege Private Ltd, Goyal added.

Goyal’s distress call has come at a time when the airline is crawling under a debt of Rs 7,600 crore amid a debt resolution plan, which is still sketchy.

First Published:Mar 11, 2019 4:36 PM IST