The pilots union of Jet Airways had on Tuesday threatened to stop flying from April 1 if a complete clarity on the resolution plan is not brought to their notice by March 31.
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Etihad Airways had purchased its stake in Jet Airways in April 2013, paying around $379 million for it.
The deal is subject to approvals from shareholders, lenders and other regulatory and statutory approvals, according to the statement.
Etihad’s decision was conveyed by its CEO Tony Douglas to SBI chief Rajnish Kumar in a meeting on Monday.
At the end of the meeting, the crisis seemed to have deepened as Etihad, which holds 24 per cent in Jet, refused to agree on the contours of the deal.
It can be noted that Etihad board is meeting in Abu Dhabi Monday to discuss the resolution plan for Jet.
Jet’s equity partner Etihad Airways may be unwilling to infuse any funds in the interim in the cash-strapped carrier.
Airline chairman Ajay Singh said this distribution tie-up with Amadeus will enable the airline’s customers to connect with its growing international network.