Etihad Bids For Jet Airways

Etihad Airways, the Abu Dhabi based airline has placed in a bid for Jet Airways, which recently reported bankruptcy (see article: Jet Setter No More for more). Jet Airways, which is in debt of 1.2billion dollars is looking for shareholders. The lender, State Bank Of India (SBI) has received four bids so far, one of them being Etihad Airways. The former already has a minority stake (less than 50% equity) in the company, and are looking to re invest back in the sunken airline.  However, they will not be allowed to buy the whole company.

Although this company has definitely gone bankrupt, there are still chances that it can be saved.  If not, the valuable assets are also welcome. Jet has made many attempts to be invested in. Many companies were interested on the condition that the founder, Naresh Goyal must step down from control. This investment is extremely crucial to Jet Airways, otherwise creditors and people they owe money to will bankrupt the company.

Do you think Jet Airways will survive, and hopefully thrive? Comment down below…

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