With regulatory clearances yet to come by for Etihad Airways to buy out 24 per cent stake in Jet Airways for over Rs 2,000 crore, the Indian carrier has written to the Airports Authority of India (AAI) seeking extension of deadline till March 31 for paying the enhanced security deposit to the airport operator.
In a communication to AAI, Jet said all airlines were passing through difficult times due to increase in fuel prices and rupee-dollar parity, which had resulted in banks delaying sanction of addition funds.
Jet said when regulatory clearances come through, its financial situation would improve and, therefore, sought an extension of deadline for enhancement of security deposit.
The airline’s board is to meet on October 23 to consider and approve the un-audited financial results of the company for quarter and half year ended September 30.
In April, Jet sold 24 per cent stake to Etihad Airways but is yet to complete the deal as the Competition Commission of India is still to give its nod. Soon after the deal was announced, it ran into trouble with the Securities and Exchange Board of India and Foreign Investment Promotion Board.
In July the FIPB cleared the proposal but with riders.
The FIPB’s provisional nod came after the two airlines assured SEBI and the Finance Ministry that effective control and management would not pass into the hands of Etihad by making changes to the Shareholders and Commercial Cooperation Agreement. Besides, any change in the shareholders’ agreement and shareholding pattern will require FIPB clearance.