Crisis-hit Jet Airways said deliberations are "progressing well" with stakeholders on a comprehensive declaration plan that also contemplates equity infusion and resulting change in its board of directors.
Among concern over Jet Airways' monetary location and mauling of shares on the stock connections, the airline said it continues to make sure that the security and operation are not impacted. On Wednesday, the civil aviation ministry uttered expect that the airline, its strategic partner Etihad and lenders reach a "common plan" to deal with the situation.
Sources said Jet Airways officials held a meeting with lenders. Specific details about the meeting could not be straight away ascertained. In a strange move, the airline issued two statements, saying that it has been working on various cost wounding measures, debt reduction and funding options.
The full-service carrier, which has been grappling with financial woes, default on loan reimbursement to an association of Indian banks led by State Bank of India (SBI) on December 31, 2018.
In a statement issued in the afternoon, the airline said a declaration plan that contemplates various options, including an amount of equity mixture by various stakeholders and the resultant change in the company's board, is being worked out.
"SBI, in discussion with the other members of the grouping and the other stakeholders, has been working on a complete declaration plan towards a rotate of the corporation for its continued growth and reinstatement of financial health," Jet Airways said.
The airline also said the resolution plan is currently under active discussion surrounded by the stakeholders and that the various options are yet to be crystallized and decided to by the stakeholders in the best wellbeing of the company.
Citing the board's decision taken in August 2018, the airline said it has been working on a variety of cost-cutting actions, debt decrease, and funding options. Infusion of capital and monetization of assets, including the company's stake in its loyalty programme, in discussion with various key stakeholders, are being looked at.
According to the airline, the declaration plan contemplate various options on the debt-equity mix, quantity of equity mixture by the various stakeholders and the resulting change in the piece of music of the board of directors.
The completion of the resolution plan, once accepted by all the stakeholders, would be subject to receipt of applicable statutory, regulatory, contractual and corporate approvals and consents.
Late in the evening, Jet Airways issued another declaration asserting that it is actively "unavailable with the stakeholders on a declaration plan, which is progressing well". The company remnants committed to all its guests and workers and continue to ensure that the safety and its operation are not impacted, it added.
In the second statement, the stressed airline also "fervently" denied and described as deceptive in nature the surmise being made about the longevity of the operation of the company by a section of the media.
Shares of Jet Airways plunged nearly 8 percent to end at Rs 271 on the BSE. Meanwhile, an airline official Wednesday said it has delayed deliveries of Boeing 737 MAX planes.
The airline was to introduce 11 Boeing 737 MAX plane by March this year and so far it has taken delivery of only five such aircraft. According to reports, Jet Airways' planned associate Etihad Airways is looking to hike its stake in the airline.
"Etihad does not remark on rumor or conjecture". As per reports, Etihad strength has to make an open offer in case it is climbing the stake in Jet Airways.
On a question on Etihad Airways supposedly in search of exception over the open offer, Civil Aviation Secretary R N Choubey said the issue is being discussed amongst the promoters and the lenders. "We hope that the three — Jet Airways, Etihad and the lenders — come together and decide on a common plan," he said in Mumbai.
