Sources in the aviation industry in Abu Dhabi have confirmed that Etihad Airways has green lighted JPPL, Jet's Frequent Flyer Programme which is majority-owned by Etihad, to enter into an agreement that will provide Jet immediate liquidity of US$35m to help it meet some of its current obligations including staff salaries. Informed sources in Abu Dhabi confirmed the multi-million dollar boon would help ease the embattled airline's financial woes that include defaults on salaries of Jet Airways employees. As part of this proposal, Etihad Airways has agreed to approve an agreement which allows for Jet Privilege pre-purchase discounted mileage redemption seats from Jet Airways, providing Jet with a windfall of $35m. <br/>
eap
A group of creditors to entities set up to finance affiliates of Etihad Airways said in a letter to the airline they were misled on its commitments to support part-owned carriers, two of which are now insolvent, a person familiar with the matter said. The investors say they bought bonds issued by EA Partners between 2015 and 2016 after Etihad implied it would back the affiliates including struggling carriers Alitalia and Air Berlin, according to the person. The group, represented by law firm Dechert, have sent a letter to Etihad asking to discuss the matter with its management and Abu Dhabi’s Department of Finance, the person said. A spokesman at Etihad declined to comment on the letter. An external representative for Dechert also declined to comment. <br/>