Jet Airways founder Naresh Goyal steps down amid crisis

Jet Airways founder Naresh Goyal his wife Anita Goyal step down from board of directors

Naresh Goyal. | Danish Siddiqui Reuters

The statement, filed by the airline, said Naresh Goyal, wife Anita Goyal and director Kevin Knight resigned on Monday and two nominee directors were inducted by the lenders.

According to industry estimates, Jet's total debt is around Rs 8,000 crore. The pilots, along with engineers and other highly critical segments of employees, have not been paid salaries from January 1, and have received only 12.5 per cent of their December pay. The development comes as a majority of the airline's fleet has been grounded amid non-payment of dues to banks, suppliers, pilots and lessors. Aviation regulator DGCA has said that only 41 Jet Airways aircraft are now available for operation, bringing down the fleet strength to less than half.

Soon after Goyal stepped down from the airline's board, Jet stocks jumped over 13 per cent.

Abu Dhabi-based Etihad is a strategic partner with 24 per cent stake in Jet Airways.

Bankers say that a revival plan would require sacrifice from the lenders, which would be subject to a new promoter stepping in with equity infusion. This will enable SBI and PNB to provide emergency funding to keep the airline afloat until a resolution plan is in place.

Lenders of the crisis-hit Jet Airways are likely to acquire a substantial stake in the carrier till a new promoter is roped in, sources said last week, a PTI report said.

The shareholders' approval came after Jet Airways Board approved the BLPRP on February 14.

The lenders will also immediately pump about ₹1,500 crore into Jet Airways by way of issue of appropriate debt instruments against security of assets.

Latest News