Jet Airways Chairman Naresh Goyal steps down the board

Jet Airways chairman and founder Naresh Goyal and his wife Anita Goyal stepped down from the board of the Jet Airways.

The shares of the airways surged in trade today after the Goyals who had set up the airline in 1993 were expected to leave
the board today. The stock price rose by 15 per cent to 259 on BSE today.

Naresh Goyal and Anita Goyal founded Jet Airways 25 years ago.

Goyals, who had 51 per cent stake, now will have 25.5 per cent stake. The Ethihad Airways’ stake will also be halved to 12 per cent. It is expected that for banks to take a controlling stake of 50.5 per cent in the airline.

Aviation regulator DGCA or Directorate General of Civil Aviation has said that only 41 Jet Airways aircraft are currently available for operation.

With several aircraft grounded and pilots being poached by low cost carriers like Spice Jet and Indigo, Jet has been facing numerous trouble now. It has delayed its payments to banks, suppliers, pilot and lessors. Pilots of Jet Airways threatened to strike from 1 April unless the airline signs a letter of intent to pay their salary dues.

On February 14, Jet Airways’ board had approved a Bank-Led Provisional Resolution Plan (BLPRP), whereby lenders would become the largest shareholders in the airline. Its shareholders also approved conversion of loan into shares and other proposals during the extraordinary general meeting on February 21.

Lead lender State Bank of India’s (SBI) managing director and an ex-Jet board member, Srinivasan Vishwanathan, is likely to be invited to take up a top position in the airline. It is learnt the lenders are considering to also invite former SBI Chairman and ex CVC Commissioner Janki Ballabh to the Jet Airways Board.

Compiled by Nikeeta Gautam with inputs from Live Mint, NDTV Profit,Business Today, India Today and The Economic Times