Etihad ‘could own 40% of India’s Jet Airways’

Etihad ‘could own 40% of India’s Jet Airways’:

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.