Jet Airways’ woes are now spilling over to its joint venture partner Etihad Airways. An entity set up by Etihad to finance its global affiliates has said that Jet has failed to pay interest due on loans extended to it.
Jet had failed to pay interest due on March 19, said filings by EA Partners I, an investment vehicle set up in 2015 by Etihad. The pay was delayed owing to “temporary liquidity constraints” at Jet, it added.
According to Reuters, Etihad set up two vehicles — EA Partners I and II — which sold $1.2 billion of bonds to raise funds for several airlines. The structure was designed to provide financing for the airlines while minimising the burden on the balance sheet of their Abu Dhabi-based parent company.