Public money being used to save Jet Airways: Congress

NEW DELHI: The Congress on Wednesday alleged that the government was trying to help Jet Airways wipe out its debt by making state-run banks convert their loans into equity. It is also using the National Infrastructure Investment Fund to offer a package to Abu Dhabi-based Etihad Airways to exit its investment in Jet, the opposition party alleged.

The Congress said this bailout of a private airline was being done "in a tearing hurry" by the same Modi government which was trying to privatise Air India and was unwilling to offer a loan-waiver to India’s debt-ridden farmers.

“SBI and other banks will now be running a private, bankrupt, airline as its 51% owner; Jet Airways’ debt of Rs 8,500 crore will be wiped out by taking equity of a private bankrupt airline by PSBs; and a foreign company, Etihad Airways, will be given a bailout package’ by (allowing it to) offload its 24% shareholding to the National Infrastructure Investment Fund for Rs 150 a share without any valuation or due diligence (of the assets),” AICC spokesperson Randeep Singh Surjewala alleged.


“On one hand, the Modi government is seeking to privatise Air India and on the other, they are buying a bankrupt private airline with public money,” Surjewala alleged.