The Jet Airways cash strapped saga took the expected turn as, the airlines’ founder Naresh Goyal and his wife Anita Goyal alongside, Etihad’s Kevin Knight also decided to step down from the board. In the current scenario, the interim management committee has decided to manage and monitor the daily operations and functioning of the company. It is not clear who constitutes this interim committee right now.
Jet Airways has confirmed that Goyal, who owns a 51% stake in the firm, will also cease to be the chairman, and this announcement was made after its board held a meeting on Monday.
Lenders of the airline are now in a hurry to begin a resolution plan, and as per reports, they will infuse up to Rs 1,500 crore via debt to equity instruments immediately. Goyal’s stake is reported to be capped at 10 percent by diluting the rest at a nominal value. SBI chairman Rajnish Kumar has stated that he expects the lenders to exit Jet in the next two months after a formal investment has come in. The merry go round on whether, Etihad Airways will further invest in Jet or take an exit will probably come to an end on March 31, 2019, with a decision likely to be taken during the board meeting.
Besides these concerns, the airline may also face troubles with regards to the pilots, as it is being said that around 200 of them have already switched to rival airlines, and many more are on their way out. To retain them, the team has promised a base city of their choice and a two-month base salary for the pilots as a joining bonus. The pilots have informed that they will not fly beyond April 1, 2019, if their dues are not paid. Jet has more than 50% of its fleet on ground already.
Talks of bringing new investors including Tata Sons is being considered, however, it is being reported that the move may take few months keeping the regulatory norms in mind.
Jet Airways’ shares today witnessed a jump of over 12 percent on the BSE and closed at Rs 260.
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