Talks between Jet’s lenders and Etihad sour; Jet cancels Abu Dhabi flights

MUMBAI: The deal to rescue Jet AirwaysNSE 0.53 % has hit an air pocket. Lenders have told Jet’s strategic partner Etihad Airways that if it is unable to accept the terms to revive the troubled airline, it should exit so that a new investor can be brought in.

Meanwhile, Jet has cancelled all flights to Etihad’s hub in Abu Dhabi, said two people in the know. The destination became Jet’s hub after it sold stake to the Gulf carrier in 2013. One of them said it was due to shortage of aircraft but it also underlines souring of talks between the two parties.

Etihad, saddled with losses and unsure of the resolution plan and its probable outcome, is understood to have said that it could exit at a price of Rs 150 a share.