Jet Airways chairman Goyal finally agrees to step down

Tuesday, 03 Mar, 2019 0

Naresh Goyal, founder and chairman of troubled Jet Airways will finally step down to enable a financial restructuring plan to begin.

Goyal has agreed to dilute his current 51% majority shareholding but will stay with the company in some capacity.

It follows a meeting of lenders which approved a debt restructuring plan and the sale and lease-back of aircraft.

Jet’s share price rose on the news.

In a letter to employees, Goyal said he would make ‘any sacrifice’ to safeguard jobs and for the good of the business.

Etihad Airways, which owns a 24% stake is expected to increase its shareholding but will not take an active management role in the business.

Goyal and Etihad Airways CEO Tony Douglas met with major lender State Bank of India.

The airline is looking for an urgent cash infusion to continue operating.

It announced it has now grounded 19 aircraft for non-payment of fees to lessors, causing hundreds of flight cancellations.

The airline has defaulted on loans and struggled to pay pilots and suppliers for several months.

High fuel costs and intense market competition have left it with no choice but to seek emergency funding to stay afloat.

Goyal founded the full-service carrier 25 years ago.



 

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TravelMole Editorial Team

Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.



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