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Etihad Airways

Etihad is back onto buying Jet again

7 Discussions

Madhatter49

Virgin Australia - Velocity Rewards

Member since 11 Dec 2016

Total posts 57

moa999

Qantas - Qantas Frequent Flyer

Member since 02 Jul 2011

Total posts 825

It seems to be a continuing mess, wrapped up in the Indian election.

Jet is now down to about 15 aircraft and having fuel supply issues. Slots at BOM have been temporarily given away, mostly to Vistara and AirAsia India.

If it manages to survive, and the longer it goes on the more i doubt this, it's going to be a shadow of its former self.

DanV

Qantas - Qantas Frequent Flyer

Member since 04 Nov 2017

Total posts 50

I'd be surprised if EY even invests further into 9W TBH They're in no financial position to invest in 9W (or VA for that matter), considering the ongoing rumours of EY selling their 9W and VA stakes over the years.

JonnoPER

Member since 22 Feb 2018

Total posts 12

EY was once a great airline and great product. Today it’s largely irrelevant an an airline when you have big brother EK some 60 miles away. When DWC becomes fully operational with EK then it’s even closer. EY doesn’t make sense to even exist.

russell

Qantas - Qantas Frequent Flyer

Member since 04 Nov 2011

Total posts 188

Etihad couldn’t afford to buy an old Ozjet frame.

kimshep

Qantas - Qantas Frequent Flyer

Member since 11 Oct 2014

Total posts 319

I'd be surprised if EY even invests further into 9W TBH They're in no financial position to invest in 9W (or VA for that matter), considering the ongoing rumours of EY selling their 9W and VA stakes over the years.


I don't know that I'd necessarily agree with your first sentence.

Jet clearly, with or without EY's help, is in financial dire straits. EY has already sunk a considerable bag of cash into their 25% investment. What are the alternatives?

1 - see Jet declare bankruptcy (and your investment disappear or evaporate)?

2 - secure a higher share (ie. 33%) of Jet, so that you have hope of preservation in a rescue / restructure?

3 - secure an even higher share (up to 49%) and become the, or a, dominant shareholder - ensuring a prominent role and voice in a bankruptcy / restructuring process?

Whilst it may be true that EY is hurting right now, I'd doubt that the 'do nothing' option 1 would be their first choice. The ability to sell their existing interest (despite previous rumours) is now sunk given that the ravens are circling. 'Fire-sale' pricing off-loads - if you can even find someone to sell to - are rarely accreditive.

kimshep

Qantas - Qantas Frequent Flyer

Member since 11 Oct 2014

Total posts 319

Some interesting developments:


It is reported that the BoI (Bank Of India) has issued an Expression of Interest over Jet Airways, which is due to close on April 10. They don't waste time. N Goyal (Chairman and primary owner) has been forced off the Board, as condition of on-going bank (loan) support, which apparently has now been withdrawn, after Goyal's exit.


Given that elections are due within the next few weeks, the ruling Govt of India won't be keen on these developments and seeing the privately-owned airline fail. However, the primary bank lenders have already been to the Supreme Court, despite the Indian Government directing them to continue to loan. This state of affairs is likely to become very messy, especially considering the April 10 expiration of the EOI. It could drag on for months and probably will. Another 'Kingfisher' echo? Oh, and EY's top partner negotiator (an ex Jet Airways employee) has shown up. Place your bets or grab your popcorn.


It is a true shame to see what has befallen one of India's previously best carriers.

NoAngelNZ

Member since 29 Nov 2018

Total posts 14

EY was once a great airline and great product. Today it’s largely irrelevant an an airline when you have big brother EK some 60 miles away. When DWC becomes fully operational with EK then it’s even closer. EY doesn’t make sense to even exist.

The Abu Dhabi government will continue to prop EY up because if they don't, they've just built a white elephant new airport. They won't want Dubai to control all the air travel in the country.

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