NEW DELHI: Jet Airways creditor State Bank of India is likely to own 15 percent of the airline if the cash-strapped carrier’s plan for a debt-for-equity swap is approved, Indian TV channels reported on Tuesday.
With debts of about $1.14 billion, Jet has been hit by fierce competition from other low-cost carriers, a rupee depreciation and high oil prices. It owes money to banks, pilots, vendors and lessors, some of whom are considering taking back aircraft, sources have told Reuters.
Jet said on Monday it would seek shareholder approval next month to convert debt into equity, increase its share capital and allow lenders to nominate a director on its board to help resolve its financial problems.
Its lenders, including SBI, could end up owning as much as 30 percent while shareholder Etihad Airways could see its stake rise to more than 40 percent from 24 percent if it injects more equity in the Indian carrier, TV channels reported. The airline’s founder and chairman Naresh Goyal is likely to see his stake cut to below 20 percent from 51 percent.
Jet, which controls a sixth of India’s booming aviation market, did not respond to a request for comment, while SBI and Etihad also did not reply to emails seeking a response.
Indian banks in 2010 undertook a similar debt for equity swap to try and save Kingfisher Airlines, founded by liquor baron Vijay Mallya, and ended up owning nearly a quarter of the airline, before losing out when it was eventually grounded.
Jet defaulted on a debt payment to a consortium of Indian banks, lead by SBI, this month, prompting a downgrade by ratings agency ICRA.
The airline has to make large debt repayments over the next few years, starting with about 17 billion rupees ($242 million) by the end of March, ICRA said on Jan. 2.
The Economic Times reported on Tuesday that Jet’s lenders want to repossess some planes and have forced the airline to ground five aircraft, including its new fuel-efficient Boeing 737 MAX planes, leading to flight cancelations.
Jet was scheduled to add 11,737 MAX planes to its fleet by March 31, but has taken delivery of only five and will not add more until a resolution plan is agreed, Reuters has reported.
Etihad ‘could own 40% of India’s Jet Airways’
Etihad ‘could own 40% of India’s Jet Airways’
- With debts of about $1.14 billion, Jet has been hit by fierce competition from other low-cost carriers, a rupee depreciation and high oil prices
- Jet said on Monday it would seek shareholder approval next month to convert debt into equity, increase its share capital and allow lenders to nominate a director on its board
Saudi PIF-backed Humain awards AI data center project to MIS
RIYADH: Humain, an artificial intelligence company backed by Saudi Arabia’s Public Investment Fund, has awarded Al Moammar Information Systems Co. a contract to design and build a data center dedicated to AI technologies.
In a filing to Tadawul, MIS said the project’s value exceeds 155 percent of its total revenues for 2024. The company reported revenues of SR1.21 billion ($320 million) last year, implying a contract value of nearly SR1.88 billion.
The development aligns with Saudi Arabia’s Vision 2030 program, which aims to position the Kingdom as a regional technology hub by the end of the decade.
The contract is expected to be signed on Feb. 15, 2026, and does not involve any related parties, according to the statement. MIS will design and construct a private AI-focused data center for Humain.
Earlier this month, Saudi Telecom Co. signed an agreement with Humain to launch a joint venture to develop and operate data centers dedicated to artificial intelligence in the Kingdom.
According to a Tadawul filing, Humain will hold a 51 percent stake in the joint venture, while stc will own the remaining 49 percent.
The data center will be developed through stc’s subsidiary Digital Data and Communications Centers, also known as center3.
The facility will feature advanced infrastructure capable of supporting up to 1 gigawatt of power, starting with an initial capacity of 250 megawatts, subject to customer demand.
Saudi Arabia has been ramping up its AI ambitions. Earlier this month, the Saudi Press Agency, citing the Global AI Index, said the Kingdom ranked fifth globally and first in the Arab region for growth in the AI sector.
The report said the ranking reflects the Kingdom’s progress in artificial intelligence and the success of its economic diversification strategy under Vision 2030.
Separately, MIS said on Dec. 24 that it signed a SR114.43 million contract with the Saudi Central Bank to renew IT systems support licenses. The 36-month agreement covers license renewals and ongoing support, with the financial impact expected to be reflected in the company’s fourth-quarter results.
