Moneycontrol PRO
HomeNewsBusinessJet Airways founder Naresh Goyal to quit as Chairman today

Jet Airways founder Naresh Goyal to quit as Chairman today

Chief Executive Vinay Dube is expected to stay on board the 25-year-old airline Goyal set up with his wife in 1993, according to the report.

March 25, 2019 / 11:18 IST
Naresh Goyal, Jet Airways (Image: Reuters)

Naresh Goyal, Jet Airways (Image: Reuters)

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Jet Airways Chairman Naresh Goyal and his wife Anita Goyal are expected to step down from the board of the cash-strapped airline on Monday, March 25, sources told Moneycontrol. Chief Executive Vinay Dube is expected to stay on board the 25-year-old airline Goyal set up with his wife in 1993.

On March 20, Moneycontrol reported that Jet Airways' lenders had worked out an alternate rescue plan for the debt-ridden airline, which involves taking majority control and reconstituting the entire board of the country’s second largest carrier.

With just 11 days left to the end of this financial year, lenders are in a rush to seal a resolution plan. They have asked Goyal to step down immediately and make way for a new management. As per the plan, Goyal's stake will likely be capped at 10 percent by diluting the rest at a nominal value.

There are also talks of new investors including Tata Sons being approached, but a source told Moneycontrol it will take at least a couple of months to bring them in, as regulatory norms require due diligence on the part of the lenders too.

Read: Etihad to take a final call on Jet Airways on March 31: Report

Earlier this month, Reuters had reported that Goyal had agreed to step down as Chairman and reduce his 51 percent stake in the airline. The report had said that Jet Airways' lenders may invoke Goyal's entire stake in the airline, and start looking for a new buyer in the coming weeks.

Saddled with more than $1 billion of debt, Jet Airways is struggling to stay afloat. It has delayed payments to banks, suppliers, pilots and lessors - some of which have forced the airline to ground as many as 40 planes.

Jet Airways has survived a near-death experience once before; in 2013, Abu Dhabi's Etihad Airways injected $600 million of capital for a 24 percent stake in the airline, three London Heathrow slots and a majority share in its frequent flyer programme. The infusion helped the airline pare down its debt and fight growing domestic competition.

(With agency inputs)

Moneycontrol News
first published: Mar 25, 2019 10:55 am

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Subscribe to Tech Newsletters

  • On Saturdays

    Find the best of Al News in one place, specially curated for you every weekend.

  • Daily-Weekdays

    Stay on top of the latest tech trends and biggest startup news.

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347