In exchange for funds through equity and soft loans, Goyal is considering handing over operations to Etihad, while retaining his position as Chairman
In exchange for funds through equity and soft loans, Goyal is considering handing over operations to Etihad, while retaining his position as the Chairman of the airline.
Sources said that Goyal and senior officials from Jet Airways held a meeting with the top management of Etihad and group CEO Tony Douglas recently.
The Middle Eastern airline holds a 24 percent stake in Jet Airways, while Goyal and his wife, Anita, hold a 51 percent stake. If the deal goes through, Etihad may own as much as 49 percent of the expanded equity base.
Goyal may dilute his stake to as low as 15 percent, depending on the size of the deal.
Tata Group, with its partner Singapore Airlines, reportedly wanted to take over Jet Airways, when the management of the company advised against it.
Private equity firm TPG was also interested in the deal but the offer didn't appeal to the management of Jet Airways, as it came with too many conditions.
Sources told the paper that it makes sense for Etihad to revive the cash-strapped airline as 11 percent of its passengers travel from India to overseas destinations and any impact on the latter will affect its passenger numbers.Many of Etihad's investments have not brought desired returns, including the ones in Alitalia and Air Berlin. If it leaves Jet Airways out to dry, all its investments up till now will have been for nothing.