India’s Jet Airways slumps following Etihad bid report

Shares in Indian budget carrier Jet Airways, down 70 percent in the past year, tumbled again yesterday after doubts were raised over a bid by Etihad. (Reuters)
Updated 14 May 2019
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India’s Jet Airways slumps following Etihad bid report

  • Jet owes vast sums to its lessors, pilots, fuel suppliers and other parties, stopped all flights from April 17
  • The move followed refusal by its lenders to extend more funds to keep the carrier flying

BENGALURU, India: Shares of Jet Airways Ltd. fell as much as 11.4 percent on Monday after media reports said a buyout offer from Middle Eastern carrier Etihad Airways was non-binding and might not guarantee a deal for the struggling Indian carrier.

Etihad, which owns a stake of about 24 percent in Jet, submitted a bid for the airline, representatives of the State Bank of India (SBI) unit overseeing the sale of the stricken carrier said on Friday. 

That had raised hopes of a bailout for cash-strapped Jet, which has about $1.2 billion in bank debt.

The Mint newspaper said on Monday that Etihad wanted a commitment from banks on additional loans once it infuses equity into the company. The Middle Eastern carrier had not been able to find a local partner and lenders may need to take an 80 percent cut on their outstanding loans to Jet Airways, the newspaper said, citing banking sources. Shares of the carrier, which have tumbled almost 70 percent over the past year, were down 5 percent as of 4:45 a.m. GMT.

Jet, which owes vast sums to its lessors, pilots, fuel suppliers and other parties, stopped all flights from April 17 after its lenders refused to extend more funds to keep the carrier flying.

SBI also received two unsolicited, non-binding bids, the bank said on Friday. Jet and SBI were not immediately available for comment.


Implementation of the direct Gulf electrical interconnection project with the Sultanate of Oman begins

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Implementation of the direct Gulf electrical interconnection project with the Sultanate of Oman begins

RIYADH: The Gulf Cooperation Council Interconnection Authority has announced the commencement of implementing the direct interconnection project between its system and the Sultanate of Oman's network, marking a strategic step that reflects the evolution of Gulf integration pathways in the energy sector and the strengthening of regional infrastructure.

Undersecretary of the Ministry of Energy and Minerals and Chairman of the Board of the Gulf Cooperation Council Interconnection Authority, Mohsen Al-Hadhrami, confirmed that the direct electrical interconnection project with the Sultanate is not merely a technical expansion of an electricity network, but rather represents an extension of a long-term strategic vision laid down by Their Majesties and Highnesses, the leaders of the Gulf Cooperation Council.

He noted that this vision was approved when the Gulf electrical interconnection project was adopted as one of the pillars of Gulf integration in infrastructure, stemming from the leaders’ belief that energy security constitutes a fundamental pillar for the stability of states, the growth of their economies, and the sustainability of their development.

He pointed out that the Gulf electrical interconnection has proven, over more than two and a half decades, to be one of the most successful models of joint Gulf action, as it has contributed to enhancing the reliability of electricity networks and achieving significant economic savings for the GCC states.

Al-Hadhrami added that the direct interconnection project with the Sultanate of Oman enhances the depth of the Gulf grid, increases its operational flexibility, and embodies an advanced model of Gulf partnership in financing vital infrastructure projects.

For his part, Ahmed Al Ibrahim, CEO of the Gulf Cooperation Council Interconnection Authority, explained that the project is considered one of the largest expansion projects in the authority’s history.

It aims to enhance the capacity of the Gulf grid to accommodate the rapid growth in electricity demand, in light of the expansion of internal networks in GCC states, major changes in electrical loads, and increased electricity generation, in addition to supporting renewable energy projects and raising the readiness of networks to face emergency situations.

The direct interconnection project with the Sultanate of Oman is considered a strategic step to enhance the integration of Gulf and regional energy networks, increase the reliability and sustainability of electricity systems, and support the objectives of GCC states in energy transition and reducing carbon emissions, thereby reinforcing the position of the Gulf electrical interconnection as a global model for regional integration in the energy sector.