Cash-strapped Jet Airways Ltd has flown straight into a storm, resulting in a major setback for India's largest full-service airline that could shake up the country's aviation industry.
Jet, which has debt exceeding 80 billion rupees ($1.12 billion) as of September-end, has been steadily losing market share to its rival and low-cost carrier IndiGo, which is owned by InterGlobe Aviation Ltd.
An interactive graphic on India's biggest airlines by market share https://reut.rs/2FUqDTO
Abu Dhabi-based Etihad Airways, Jet's second-largest shareholder, is now in talks with creditors for a deal that could help the airline back on its feet.
Here are some major developments in Jet's story:
Jet Airways' volatile market value https://reut.rs/2FRaCho
Aug 1, 2018 – Media report says Jet asked employees to take an up to 25 percent cut in salaries as a part of a cost cutting measure
Aug 3 – Jet denies report that it cannot fly beyond 60 days, and dismisses conjecture of stake sale
Aug 9 – Airline defers board meet for first-quarter results
Aug 11 – After State Bank of India chairman says Jet's loan is on the bank's watch list, Jet says it is regular in payment obligations to all banks
Aug 13 – Airline reaffirms that it is considering various options to meet its funding requirements
Aug 20 - Sources tell Reuters that private equity firm TPG Capital is considering investing in Jet, but is not close to finalising a deal
Aug 27 – Jet posts loss for the June-quarter, says it will inject funds and cut costs by more than 20 billion rupees in two years
Sept 6 – Jet says it paid salaries to 84 percent of its employees after reports emerge that pilots warned 'non-cooperation' over salary default
Oct 4 – Rating agency ICRA downgrades https://www.icra.in/Rationale/ShowRationaleReport/?Id=73861 the company's long term loans and NCDs, citing impact of steep increase in jet fuel prices, rupee depreciation, delay in implementation of liquidity initiatives
Oct 18 – Report says Indian conglomerate Tata Group is in talks to buy stake in Jet. Jet calls report "speculative"
Oct 30 - U.S.-based Delta Air Lines Inc expresses interest to buy Jet stake from promoter Naresh Goyal and Etihad Airways
Nov 5 – Report says Tata aims to buy the 51 percent stake in the airline owned by Naresh Goyal, and Etihad Airways' 24 percent stake, and merge Jet with Vistara
Nov 12 – Jet posts third straight quarterly loss, chief executive officer Vinay Dube expresses confidence in overcoming current challenges
Nov 13 – Tata Sons begins due diligence to buy Jet, reports say
• Jet executive says company is in talks with multiple parties for a stake sale in its loyalty program, and equity infusion in the airline
Nov 15 – Shares surge nearly 25 percent following reports that the debt-laden airline was nearing a rescue deal with Tata Sons; another report says the Indian government asked Tata to explore buying Jet
Nov 16 – Tata Sons says discussions on Jet is preliminary and no proposal has been made
Nov 22 - Independent director Ranjan Mathai resigns, citing rising pressure from other commitments
Dec 3 - Jet says it will stop providing free meals to most domestic economy class passengers from January, in its latest move to cut costs and boost revenues
Dec 5 - Jet and Etihad Airways have been holding rescue talks with Jet's bankers, sources tell Reuters
Dec 6 - Jet tells its pilot union it will clear all salary dues by April, a source tells Reuters
Dec 7 - ICRA cuts Jet rating yet again, cites delays in implementation of the proposed liquidity initiatives by Jet's management
Dec 14 - Goyal's penchant for control has come up as a major obstacle as the airline tries to negotiate a rescue deal, several people who have worked closely with him or known him over the years tell Reuters
Jan 2, 2019 - The airline says it has delayed payment to a consortium of Indian banks, led by SBI; ICRA cuts rating again
Jan 10 - Jet proposes to creditors that it will catch up with debt payments in arrears by September, and from April will meet debt payments as they come due, according to a document seen by Reuters
Jan 11 - Some aircraft lessors were prompted to explore taking back aircraft from Jet, three people familiar with the matter told Reuters. Etihad is not "in any position to sink new equity into Jet at this juncture", says a person familiar with Etihad's position.
Jan 14 - Jet shares surged over 18 percent after report stated founder and chairman Naresh Goyal is likely to step down from the board and give up majority control.
Jan 15 - Etihad Airways plans to hike its stake in Jet, a person close to the Abu Dhabi carrier tells Reuters.
Jan 16 - Jet says lenders discussing plan involving a cash injection by stakeholders and board changes. TV channel reports that Etihad offered to buy Jet shares at a 49 percent discount and immediately release $35 million.
Jan 17 - Top creditor SBI says Jet's lenders are considering a plan to resolve its debt issues, amid further reports that Goyal is willing to invest 7 billion rupees in the airline and pledge all his shares but wants to retain a 25 percent stake.
($1 = 70.5090 Indian rupees)