Jet Crisis
At the same time, Volcan Investments, the investment company of Vedanta Chairman Anil Agarwal has also said that it will not pursue the EoI it submitted for Jet.
  • Tuesday, August 13, 2019 - 10:09
Image: Papa Sierra via Flickr

Abu Dhabi-based Etihad Airways on Monday said that it decided not to lodge an expression of interest (EoI) to reinvest in Jet Airways, as the Indian passenger carrier had "unresolved liability issues".

In 2013, Etihad had acquired a 24 per cent stake in Jet.

"Since then, Etihad has consistently and constructively sought and advanced solutions to help resolve Jet's issues," the airline said in a statement. 

"But as a minority shareholder, Etihad has had limited capacity to secure required changes." 

Earlier this year, Etihad presented a conditional expression of interest to reinvest in Jet as a minority stakeholder, with an agreed partner, but this did not materialise.

The airline added that its decision not to lodge an EoI, does not affect Etihad's "continued commitment" to India. 

Etihad flies between Abu Dhabi and 10 destinations in India, and "is continually increasing the frequency of its flights, the size of its aircraft, the quality of its product and the international route connections it offers beyond its hub in Abu Dhabi".

Interestingly, this comes at the same time as Volcan Investments, the investment company of Vedanta Chairman Anil Agarwal saying it will not pursue the Expression of Interest (EoI) submitted for the debt-ridden Jet Airways.

"The EoI for Jet Airways by Volcan was exploratory in nature. On further evaluation and considering other priorities, we intend to not pursue this further," Agarwal said in a statement.

According to Agarwal, Jet Airways was the pioneer to open skies in India after Air India and created a "world class airline with finest team and connected" numerous global and domestic destinations. 

"India is among the largest and fastest growing aviation markets in the world and I am sure many airlines and investors will look at this opportunity," he said.

Currently, Jet is under the NCLT process, under which a commitee of creditors has invited EoI from potential bidders. 

If a bid is approved by a majority of CoC members, only then the resolution can move ahead. A formal concurrence from the NCLT will be, though, required.