Indian airline on verge of collapse close to getting a lifeline

Lenders to Jet Airways India proposed a bailout of the beleaguered carrier, potentially paving the way for a revival of the airline that was on the verge of collapse. Jet Airways, which needs 85b rupees ($1.2b) to help it get back on its feet, will be revamped with banks becoming the biggest shareholders of the company, according to a filing Thursday. The restructuring would involve a mix of debt-to-equity swap, new capital infusion and asset sales, the company said, without elaborating. The proposal, reached after weeks of negotiations, may provide a respite to the carrier. Jet Airways still faces intense competition from low-cost rivals, high fuel costs and levies. It has more accumulated losses than any publicly-traded Asian airline apart from Pakistan International Airlines. The proposed bailout, advanced by State Bank of India, needs approvals from all lenders, a banking industry group, Jet Airways’ founder Naresh Goyal and the board of Etihad, according to the statement. Jet Airways has called for an extraordinary general meeting on Feb. 21 to seek shareholder consent for the deal and to name lenders’ nominees to the board.<br/>