NEW DELHI: Shares of Jet Airways (India) cracked nearly 7 per cent in early trade on Wednesday after its partner Etihad expressed its desire to exit the company.According to an ET report, Etihad has formally asked State Bank of India (SBI) to purchase its stake in the airline.
The Abu Dhabi-based company conveyed to SBI its decision to exit Jet in a meeting on Monday.The report further suggested that Etihad wants SBI to buy out its stake and also take over its liabilities in the form of a guarantee for Jets loan from HSBC Dubai.
Etihad has also offered its 50.1 per cent stake in Jet Privilege to SBI.Separately, the National Aviators Guild the body representing Jets domestic pilots on Tuesday threatened to stop flying from April 1 if the resolution plan is delayed and salary dues are not cleared by the end of March.
The body represents around 1,000 pilots of the airline.
Meanwhile, the government is looking to explore all options for Jet before initiating insolvency proceedings under the Insolvency and Bankruptcy Code (IBC).
The government has indicated to the banks that it favours an Indian player holding a majority stake in the troubled airline.