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<ul><li>Jet Airways <keyword id="178658" type="POSITION" weightage="20" keywordseo="former-ceo">former CEO</keyword> Steve Forte advises banks against <keyword id="122732" type="PERSON" weightage="20" keywordseo="Naresh-Goyal">Naresh Goyal</keyword>'s offer. </li><li>Goyal's offer to invest additional₹ 700 crore to retain at least 25% stake. </li><li>Etihad offered a price 46% below Friday's (January 18) closing price and sought to oust Goyal.</li></ul> India’s oldest private airline, Jet Airways, is on the brink of a collapse, and there is a bitter battle for control underway between the two partners that own the company that has already defaulted on its debt. Steve Forte, the man who led Jet Airways for a couple of years until 2002, has a point to make about what is unfolding at the airline. “If Mr. Goyal's offer is accepted by the banks then nothing will change and the downward spiraling of Jet Airways will continue. The airline will burn through the new cash infusion just like it did with the initial infusion from Etihad and any other loans it received,” he <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/a-jet-etihad-deal-wont-comfort-many-investors/articleshow/67615614.cms">told</a> the Economic Times (ET). Naresh Goyal has offered to invest up to ₹700 crore in the cash-strapped airline and sought to retain at least a 25% stake in the company. “Given Jet's outstanding debt (over ₹8,000 crore),₹700 crore from Mr. Goyal is a drop in the bucket,” according to Forte. In 2013, Etihad <a href="https://www.livemint.com/Companies/zY6HS6C2FeFMOncS2WeRML/Jet-AirwaysEithad-deal-may-finally-be-cleared-by-board.html" data-type="tilCustomLink" target="_blank">invested</a> more than ₹2,000 crore for a 24% stake in Jet at a considerable premium to its market value, arranged soft loans for the Indian airline, and paid its bills, ET reported. Naresh Goyal, the founding Chairman, remained at the helm and five years hence, the airline Not surprisingly, Etihad is bargaining hard this time. Reports suggest the Abu Dhabi-based partner has only offered to increase its stake in the cash-strapped airline by buying shares at only <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/etihad-ceo-sets-tough-new-terms-for-jet-airways-bailout/articleshow/67551913.cms">₹150 a share</a>- a 46% discount to Jet’s current share price - and demanded the complete exit of owner Naresh Goyal and his family as well as the right to appoint a CEO. Meanwhile, Indian banks find themselves between a rock and a hard place. Aside from its concerns about Goyal’s leadership, Etihad will find it difficult to increase its bid for Jet, despite the potential of the Indian market, because of its own financial stress as well as the restrictions on foreign ownership of airlines in India. The anxiety will as much for the investors holding the shares of Jet Airways as the boardroom battle plays out. The stock has nearly 65% of its value in the last one year. See also: <a href="https://www.businessinsider.in/jet-airways-revival-delayed-by-etihads-hard-bargain/articleshow/67567581.cms">Jet Airways’ revival delayed by Etihad’s hard bargain</a> <a href="https://www.businessinsider.in/lenders-plan-to-keep-jet-airways-afloat-may-put-etihad-in-the-cockpit/articleshow/67451283.cms">Lenders’ plan to keep Jet Airways' afloat may put Etihad in the cockpit</a>

A former Jet Airways insider says Naresh Goyal cannot run the airline

<ul><li><keyword id="6355247" type="UNKNOWN" weightage="20" keywordseo="jet">Jet</keyword> chairman <keyword id="122732" type="PERSON" weightage="20" keywordseo="Naresh-Goyal">Naresh Goyal</keyword>, released a joint statement along with partner <keyword id="6437601" type="ORGANIZATION" weightage="20" keywordseo="etihad">Etihad</keyword>’s CEO, Tony Douglas, declaring their confidence in the plan to make Jet Airways financially viable again. </li><li>The statement came hours after speculative reports of a possible move to <keyword id="43550" type="EVENT" weightage="20" keywordseo="Bankruptcy">bankruptcy</keyword> court by banks. </li><li>Banks want Etihad take operational control of Jet, a move opposed by the current chairman Naresh Goyal.</li></ul>The battle for control over India’s beleaguered Jet Airways may have taken a turn towards resolution. Chairman Naresh Goyal, released <a href="https://www.jetairways.com/en/in/jetexperience/press-releases.aspx">a joint statement</a> along with partner Etihad’s CEO, Tony Douglas, declaring their confidence in the plan to make Jet Airways financially viable again. “Jet Airways, its principal shareholders, including Etihad Airways, and key financial stakeholders are working towards the finalisation and subsequent implementation of the bank-led provisional resolution plan (BLPRP) to ensure the carrier emerges as a financially strong and resilient airline,” said the statement. The statement has come hours after reports speculated that the company’s biggest lender State Bank of India may drag the airline <a href="https://www.businessinsider.in/sbi-may-move-indias-bankruptcy-court-to-recover-dues-from-jet-airways-report/articleshow/68145302.cms">to bankruptcy court</a> - a move that will hurt everyone involved. Once the case lands in the National Company Law Tribunal, the control of the company would be handed over to creditors, where a debt repayment plan overseen by court-appointed bankruptcy professional would follow. Without a consensus by the <a href="https://economictimes.indiatimes.com/industry/banking/finance/how-insolvency-and-bankruptcy-code-lays-down-a-robust-framework-to-deal-with-distressed-assets/articleshow/62583210.cms">majority</a> of the creditors, the company runs the risk to be liquidated. The resolution plan, which was formulated by the airline’s creditors received the approval of Jet’s shareholders <a href="https://www.business-standard.com/article/companies/jet-airways-shareholders-give-consent-to-debt-equity-conversion-119022300017_1.html">earlier this week.</a> Etihad had abstained from voting on the resolution proposals, <a href="https://economictimes.indiatimes.com/industry/banking/finance/banking/sbi-mulling-insolvency-route-via-nclt-to-recover-jet-airways-loan/articleshow/68141255.cms">reports</a> said. Bankers <a href="https://www.businessinsider.in/lenders-plan-to-keep-jet-airways-afloat-may-put-etihad-in-the-cockpit/articleshow/67451283.cms">have been keen</a> that Etihad take operational control of the embattled airline, a proposal that the current chairman Naresh Goyal has fought tooth and nail. However, within hours after reports of a possible move to bankruptcy, Jet Airways and Etihad issued the joint statement. The bailout plan will see a consortium of banks, led by State Bank of India, take a 51% stake in Jet by converting their debt into equity. It also involves the raising of ₹8.5 billion worth of capital, a quarter of which will come from Goyal and Etihad - which will likely see its 24% stake in the airline rise. Meanwhile, pilots have also threatened to leave the airline and lessors have sought <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/lessors-doubt-jet-airways-rescue-plan-pull-out-more-planes-sources/articleshow/68095481.cms">to seize planes</a>. An anonymous source from the airline told <a href="https://www.business-standard.com/article/companies/jet-will-re-emerge-as-a-robust-airline-goyal-etihad-ceo-in-joint-message-119022600019_1.html">Business Standard</a> that the airline’s employees were anxious and uncertain about the resolution process. The statement was likely intended at preventing the departure of pilots and other employees over unpaid dues. While the joint statement was high on confidence, it didn’t give much in the way of details or a timeline. Not surprisingly, Jet’s <a href="https://www.google.com/search?q=jet+airways+share+price&amp;rlz=1C1GCEU_enIN820IN820&amp;oq=jet+airways+share+price&amp;aqs=chrome.0.0l6.4239j1j7&amp;sourceid=chrome&amp;ie=UTF-8">shares</a> opened a mere fraction of a percentage point higher. The finer details of the plan will likely be made available <a href="https://www.moneycontrol.com/news/business/companies/jet-airways-etihad-outline-plan-to-reclaim-airline-of-first-choice-position-3581871.html">in the first week of March</a>, when Jet’s creditors sit down with Etihad to discuss capital-raising. Etihad has been extremely rigid about its participation in the bailout, having dealt with the fallout of a number <a href="https://www.arabianbusiness.com/transport/398798-etihad-airways-improves-performance-but-alitalia-airberlin-continue-to-haunt-financials">of questionable investments</a> in the recent past. The first order of business for Jet will be to make good on salary payments and the repayment of ₹17 billion worth of debts maturing by the end of the financial year. As of March 2018, it had total debts of ₹84.1 billion. SEE ALSO: <a href="https://www.businessinsider.in/sbi-may-move-indias-bankruptcy-court-to-recover-dues-from-jet-airways-report/articleshow/68145302.cms">SBI denies reports it is weighing NCLT to recover dues from Jet Airways</a> <a href="https://www.businessinsider.in/indias-banks-watch-jet-airways-takeover-battle-between-naresh-goyal-and-etihad/articleshow/67618063.cms">A former Jet Airways insider says Naresh Goyal cannot run the airline</a> <a href="https://www.businessinsider.in/lenders-plan-to-keep-jet-airways-afloat-may-put-etihad-in-the-cockpit/articleshow/67451283.cms">Lenders’ plan to keep Jet Airways' afloat may put Etihad in the cockpit</a>

The threat of bankruptcy forces Etihad and Naresh Goyal to call for truce

<ul><li>A group of banks led by SBI are expected to take the largest stake in the airline. </li><li><keyword id="6437601" type="ORGANIZATION" weightage="20" keywordseo="etihad">Etihad</keyword> seems reluctant to take control of the airline, after offering to buy additional shares at a very low price. </li><li>Either way, the airline’s owner <keyword id="122732" type="PERSON" weightage="20" keywordseo="Naresh-Goyal">Naresh Goyal</keyword> is set to lose his majority stake.</li></ul>The probability of <keyword id="6358200" type="COMPANY" weightage="20" keywordseo="jet-airways">Jet Airways</keyword> being taken over by a group of creditors, led by <keyword id="6354731" type="DOMAIN" weightage="20" keywordseo="state-bank-of-india">State Bank of India</keyword> (SBI), looks more and more likely as discussions between the various stakeholders reach their final stages. The news comes amid reports that Etihad only offered to increase its stake in the cash-strapped airline by buying shares at only <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/etihad-ceo-sets-tough-new-terms-for-jet-airways-bailout/articleshow/67551913.cms">₹150 a share</a>- a 42% discount to Jet’s current share price - and demanded the complete exit of owner Naresh Goyal and his family as well as the right to appoint a CEO. In a <a href="https://www.bseindia.com/xml-data/corpfiling/AttachLive/1eef5571-1726-4c3d-86ac-2b3c59799340.pdf">stock exchange filing</a> yesterday, Jet rubbished the reports and reiterated that <a href="https://www.businessinsider.in/lenders-plan-to-keep-jet-airways-afloat-may-put-etihad-in-the-cockpit/articleshow/67451283.cms">its restructuring plan </a>was fully underway. However, as Etihad drives a hard bargain, it seems more likely than not that Jet Airways’ creditors will be forced to become the airline’s largest shareholders after converting their debt into equity. In fact, sources <a href="https://www.business-standard.com/article/companies/sbi-led-consortium-of-lenders-likely-to-bag-biggest-stake-in-jet-airways-119011700070_1.html">told Business Standard</a> that the SBI-led consortium of banks would end up with a 40% stake in the airline, while Etihad would only raise its 24% stake by a few percentage points. The move will effectively push Naresh Goyal out of the driver’s seat by halving his 51% holding. WIth the changes in ownership, the composition of the airline’s board of directors will also change, with several banking executives taking seats to oversee the resolution plan. While Goyal will lost his majority holding, a complete exit seems unlikely. He has reportedly offered to pump in ₹7 billion of his own cash into the airline on the condition that he retains at least a 25% shareholding, according to a letter he wrote to SBI Chairman Rajnish Kumat that was seen by the Press Trust of India. The proposed bailout of Jet Airways by the very banks that it owes money to follows the completion of a forensic audit of the airline’s debts and unreleased financial accounts. The audit, which was undertaken by Ernst and Young, a consultancy, reportedly <a href="https://www.business-standard.com/article/companies/lenders-to-bail-out-debt-laden-jet-airways-after-forensic-clean-chit-119011500040_1.html">failed to show</a> any financial malfeasance or diversion of funds at the airline, just shoddy management. Jet Airways has around ₹17 billion of debts to banks other than its domestic creditors maturing by the end of March 2019. If it is to pay back those loans, the restructuring plan - which includes a capital infusion by Etihad and Jet - will have to be kickstarted as soon as possible. SEE ALSO: <a href="https://www.businessinsider.in/lenders-plan-to-keep-jet-airways-afloat-may-put-etihad-in-the-cockpit/articleshow/67451283.cms">Lenders’ plan to keep Jet Airways' afloat may put Etihad in the cockpit </a> <a href="https://www.businessinsider.in/jet-airways-misses-a-loan-repayment-and-gets-downgraded-again-further-compromising-owner-naresh-goyals-plans-to-retain-control-of-the-airline/articleshow/67361859.cms">Jet Airways misses a loan repayment and gets downgraded again, further compromising owner Naresh Goyal’s plans to retain control of the airline</a>

Jet Airways’ revival delayed by Etihad’s hard bargain

Mumbai, A special PMLA court here on Thursday remanded <keyword id="6358200" type="General" weightage="50" keywordseo="jet-airways" source="Orion">Jet Airways</keyword> founder <keyword id="122732" type="General" weightage="50" keywordseo="naresh-goyal" source="Orion">Naresh Goyal</keyword> in 14-day judicial custody in a money laundering case linked to an alleged fraud of Rs 538 crore at the Canara Bank. The court accepted <keyword id="6361408" type="General" weightage="100" keywordseo="goyal" source="Orion">Goyal</keyword>'s request to send him to the Arthur Road jail in South Mumbai. The <keyword id="6357808" type="General" weightage="50" keywordseo="enforcement-directorate" source="Orion">Enforcement Directorate</keyword> (ED) arrested Goyal on September 1 under the Prevention of Money Laundering Act (PMLA) following a long session of questioning at the central agency's office here. The 74-year-old businessman was produced before the special judge for cases under PMLA, MG Deshspande, at the end of his ED remand on Thursday. The court remanded him in judicial custody as no further remand was sought by the probe agency. The court also accepted Goyal's request to send him to the Arthur Road jail in Byculla instead of Taloja jail in Navi Mumbai. Later, Goyal moved an application saying he suffers from a host of health issues and requested that he be allowed to undergo daily medical checkups by his family physician, specialist consulting doctors and personal doctors, and be provided with medical facilities on a regular basis during his stay in the jail. In the application, Goyal said he was suffering from ischemic heart disease and was operated at the <keyword id="6425633" type="General" weightage="50" keywordseo="asian-heart-institute" source="Orion">Asian Heart Institute</keyword> for "treatment of 80 per cent of blockages in his left main artery which is a life threatening condition". His plea said he also has hypertension, diabetes, restricted mobility, severe shoulder impingement and neck pain due to a fall in June 2022. In another application, Goyal sought appropriate bedding on a daily basis considering his medical conditions and home-cooked food as per dietary prescription. The court has asked the prosecution to file its say on Goyal's applications. The money laundering case stems from an FIR of the <keyword id="6354889" type="General" weightage="50" keywordseo="central-bureau-of-investigation" source="Orion">Central Bureau of Investigation</keyword> (CBI) against Jet Airways, Goyal, his wife Anita and some former company executives of the now-grounded private airline in connection with an alleged Rs 538-crore fraud case at the Canara Bank. The FIR was registered on the bank's complaint which alleged that it sanctioned credit and loans to Jet Airways (India) Ltd to the tune of Rs 848.86 crore of which Rs 538.62 crore was outstanding.

Jet Airways founder Naresh Goyal sent to 14-day judicial custody

<ul><li><keyword id="122732" type="PERSON" weightage="20" keywordseo="Naresh-Goyal">Naresh Goyal</keyword>, the chairman of <keyword id="6358200" type="COMPANY" weightage="20" keywordseo="jet-airways">Jet Airways</keyword>, has finally agreed to relinquish his stewardship of the struggling airline. </li><li>The move follows a meeting of Jet’s creditors and partner <keyword id="6437601" type="ORGANIZATION" weightage="20" keywordseo="etihad">Etihad</keyword> on February 28th. </li><li>The reduction of Goyal’s stake was a key component to a $900 million resolution plan by the airline’s consortium of creditors, led by <keyword id="6354731" type="UNKNOWN" weightage="20" keywordseo="state-bank-of-india">State Bank of India</keyword>.</li></ul>Naresh Goyal, the chairman of Jet Airways, has finally agreed to relinquish his stewardship of the struggling airline. The move follows a meeting of Jet’s creditors and partner Etihad on February 28th. The reduction of Goyal’s stake was a key component in a $900 million resolution plan by the airline’s consortium of creditors, led by State Bank of India. The bailout will see the banks convert their debt into equity. As a result, Goyal will lose his majority shareholding, which will make it easier for partner Etihad to seize the reins. Sources told the Economic Times that Goyal’s stake would<a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/naresh-goyal-agrees-to-step-down-as-jet-airways-chairman/articleshow/68211070.cms"> fall to 20%</a> from 51%. He will also have to give up his board seat in name. The seat will stay in the Goyal family - going to his son Nivaan Goyal. The resolution plan also involves the <a href="https://www.businessinsider.in/naresh-goyal-and-etihad-statement-may-help-jet-airways-debt-resolution-plan/articleshow/68165797.cms">raising of ₹8.5 billion</a> worth of capital, a quarter of which will come from Goyal and Etihad - which will likely see its 24% stake in the airline rise. The next step will be the issue of fresh shares. As per the plan, Jet’s creditors will become the largest shareholders in the company. Goyal’s resignation has been a long time coming. However, the final piece in the puzzle is Etihad. The banks want Etihad to take operational control of the airline, but the UAE-based aviation group has so far been reluctant. It rejected a proposal to put ₹7.5 billion of bridge funding in the airline at Thursday’s meeting - until a final resolution plan was in place. Etihad has been extremely rigid about its participation in the bailout, having dealt with the fallout <a href="https://www.arabianbusiness.com/transport/398798-etihad-airways-improves-performance-but-alitalia-airberlin-continue-to-haunt-financials">of two other partner insolvencies</a> in the recent past. Etihad wants the right of refusal in the event that Jet’s lenders sell their shares and exit the airline in the future. It also wants to be granted a reprieve from making an open offer for an additional 20% stake once it’s shareholding crosses 25% - <a href="https://www.thehindubusinessline.com/markets/stock-markets/sebis-takeover-code-raises-open-offer-trigger-to-25/article20312244.ece1">a SEBI regulation</a>. SEE ALSO: <a href="https://www.businessinsider.in/naresh-goyal-and-etihad-statement-may-help-jet-airways-debt-resolution-plan/articleshow/68165797.cms">The threat of bankruptcy forces Etihad and Naresh Goyal to call for truce</a> <a href="https://www.businessinsider.in/lenders-plan-to-keep-jet-airways-afloat-may-put-etihad-in-the-cockpit/articleshow/67451283.cms">Lenders’ plan to keep Jet Airways' afloat may put Etihad in the cockpit</a>

Jet’s chairman finally agrees to step down, paving way for bank-led bailout

<ul><li><keyword id="6358200" type="COMPANY" weightage="20" keywordseo="jet-airways">Jet Airways</keyword>’ ₹85 billion <keyword id="6359987" type="UNKNOWN" weightage="20" keywordseo="Resolution">resolution</keyword> plan was given a shot in the arm yesterday, after <keyword id="6437601" type="ORGANIZATION" weightage="20" keywordseo="etihad">Etihad</keyword> agreed to pump a fresh round of capital into the struggling airline. </li><li>As a result, Jet’s share price on the Bombay Stock Exchange rose 2% in early trading this morning. </li><li>In order to keep Jet afloat for the time being, Etihad was being courted by Jet’s owner <keyword id="122732" type="PERSON" weightage="20" keywordseo="Naresh-Goyal">Naresh Goyal</keyword> for a ₹7.5 billion investment. However, sources told the Press Trust of India that Etihad’s investment could be in the region of ₹16-₹19 billion.</li></ul> Jet Airways’ <a href="https://www.businessinsider.in/jet-airways-chairman-naresh-goyal-steps-down/articleshow/68212261.cms">₹85 billion resolution plan </a>was given a shot in the arm late on March 11th, after Etihad agreed to pump a fresh round of capital into the struggling airline. As a result, Jet’s share price on the Bombay Stock Exchange rose 2% in early trading on March 12th. In order to keep Jet afloat for the time being, Etihad was being courted by Jet’s owner Naresh Goyal for <a href="https://www.livemint.com/companies/news/jet-airways-crisis-naresh-goyal-seeks-rs-750-crore-in-funding-from-etihad-1552306953342.html">a ₹7.5 billion</a> investment. This is equivalent to the interim funding that Jet’s creditors are willing to extend to the airline. However, sources told <a href="https://www.livemint.com/">the Press Trust of India </a>that Etihad’s investment could be in the region of ₹16 billion-₹19 billion, raising its stake by 0.9 percentage points to 24.9% and giving it two additional board seats. This, in addition, to <a href="https://www.businessinsider.in/pnb-gives-jet-emergency-loan-of-20-5-billion-rupees-as-resolution-talks-continue/articleshow/68352446.cms">a ₹20.5 billion</a> loan from Punjab National Bank is aimed at helping the airline tide over while a resolution and restructuring plan is finalised. For the past few weeks, the consortium of creditors finalising Jet’s bailout have been pushing for Etihad’s participation - not only in terms of an investment, but also in taking operational control as Jet’s owner Naresh Goyal <a href="https://www.businessinsider.in/jet-airways-chairman-naresh-goyal-steps-down/articleshow/68212261.cms">has decided to step down</a>. Whatever the eventual amount, the investment from Etihad, which is pending the approval of the board of the UAE-based airline, comes with some rigid conditions. It will reportedly be secured against 15% of the shares of Jet’s loyalty programme subsidiary, Jet Privilege Pvt. Ltd. It will also be contingent on the completion of the full round of interim financing of ₹40 billion by Jet’s creditors and promoters. SEE ALSO: <a href="https://www.businessinsider.in/pnb-gives-jet-emergency-loan-of-20-5-billion-rupees-as-resolution-talks-continue/articleshow/68352446.cms">Punjab National Bank has reportedly given Jet a ₹20.5 billion lifeline to keep it airborne</a> <a href="https://www.businessinsider.in/jet-airways-chairman-naresh-goyal-steps-down/articleshow/68212261.cms">Jet’s chairman finally agrees to step down, paving way for bank-led bailout</a>

Etihad finally caves in creditor and promoter demands to invest in Jet

<ul><li>State Bank of India has reportedly agreed to infuse ₹15 billion into the private carrier.</li><li>Lenders to form an interim management committee to manage and monitor the daily operations and cash flows.</li><li>Lenders to undertake a bidding process for its shares. </li></ul>Jet Airways founder and chairman <keyword id="122732" type="PERSON" weightage="20" keywordseo="Naresh-Goyal">Naresh Goyal</keyword> on Monday stepped down from the board of the struggling airline. The move comes following an ‘emergency board meeting’ on Monday. Its main lender State Bank of India reportedly agreed to infuse ₹15 billion into the private carrier to help it stay afloat. Goyal’s wife Anita Goyal and Kevin Knight, a nominee of Etihad Airways, have also resigned. Stakes of both Naresh Goyal and Etihad, which owns a minority stake in the airline, have been halved following the move, passing on control of the airline to its lenders, according to media reports. Jet's shares rose almost 13% following the news of Goyal's exit. According to a regulatory filing by Jet, an interim management committee will be formed by its lenders led by the State Bank of India that will manage and monitor the daily operations and cash flow of the airline. Additionally, the lenders will begin a bidding process to sell shares to new investors by the end of the June quarter. Jet Airways, which is saddled with over $1 billion in debt, has grounded nearly 40 planes because of non-payment of dues in the past few weeks. Many of its pilots and other support staff have also not been paid salaries for several months, according to media reports. Earlier this year, the airline struck a debt resolution plan with its lenders. However, there were disagreements between the Jet's management and Etihad Airways, as well as among creditors, prompting the Indian government to hold an emergency meeting recently to urge its state-run lenders to bail out the airline. With IANS

Naresh Goyal resigns from Jet Airways following emergency board meeting

<ul><li>Ahead of a potential exit by <keyword id="140808" type="COMPANY" weightage="20" keywordseo="Etihad-airways">Etihad Airways</keyword> at the end of this month, <keyword id="6358200" type="COMPANY" weightage="20" keywordseo="jet-airways">Jet Airways</keyword>’ main creditor, the State Bank of India, and its founder <keyword id="122732" type="PERSON" weightage="20" keywordseo="Naresh-Goyal">Naresh Goyal</keyword>, who recently resigned, have reportedly ramped up the search for a new investor. </li><li><keyword id="13222" type="CITY" weightage="20" keywordseo="SBI">SBI</keyword> is said to be in preliminary talks with <keyword id="124318" type="COMPANY" weightage="20" keywordseo="TPG-Capital">TPG Capital</keyword>, a private equity major, while Goyal is pursuing an investment from Delta Airlines. </li><li>In addition to TPG and Delta, Singapore’s private equity fund Temasek and the Abu Dhabi Investment Authority (ADIA) are also said to be in talks to purchase a stake in the airline. </li></ul> Ahead of <a href="https://www.livemint.com/companies/news/deal-or-no-deal-etihad-to-take-final-call-on-jet-airways-on-31-march-1553467810101.html">a potential exit by Etihad Airways</a> at the end of this month, Jet Airways’ main creditor, the State Bank of India, and its founder Naresh Goyal, who recently resigned, have reportedly ramped up the search for a new investor. In fact, the hunt has taken SBI and Goyal, who owns a minority stake, to the US, according <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/hunt-for-jet-airways-buyer-takes-sbi-goyal-to-tpg-capital-and-delta-air-lines/articleshow/68623464.cms">to media reports</a>. SBI is said to be in preliminary talks with TPG Capital, a private equity major, while Goyal is pursuing an investment from Delta Airlines, which has <a href="https://www.business-standard.com/article/companies/we-are-building-strong-links-with-indian-market-says-delta-vp-nat-pieper-117070500181_1.html">an operational alliance with Jet in India</a>. Interestingly, private equity firm TPG Capital was said to be <a href="https://www.livemint.com/Companies/05AZZqQrKM021AiHThx9KP/TPG-Capital-joins-race-to-buy-stake-in-Jet-Privilege.html">eyeing a stake</a> in Jet’s loyalty programme Jet Privilege in August last year, although a deal never materialised. A new investor is “critical” to Jet’s future, the airline’s CFO, Amit Agarwal, told <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/a-new-investor-is-critical-to-jet-airways-future-cfo/articleshow/68571160.cms">ET</a> earlier this week. Jet desperately needs a cash infusion. An official at the company told Moneycontrol that a buyer would have to pump <a href="https://www.moneycontrol.com/news/business/jet-airways-new-investor-needs-to-bring-rs-4500-cr-capital-3705181.html">₹45 billion</a> as part of the airline’s turnaround plan. In addition to TPG and Delta, Singapore’s private equity fund <a href="https://www.business-standard.com/article/companies/suitors-for-jet-airways-hunt-for-partners-naresh-goyal-may-join-race-119032900056_1.html">Temasek and the Abu Dhabi Investment Authority (ADIA</a>) are also said to be in talks to purchase a stake in the airline. The bidding process opens in the second week of April and concludes at the <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/hunt-for-jet-airways-buyer-takes-sbi-goyal-to-tpg-capital-and-delta-air-lines/articleshow/68623464.cms">end of next month.</a> Most Indian airlines are <a href="https://www.moneycontrol.com/news/business/major-airlines-may-opt-avoid-bidding-for-jet-airways-3714941.html">expected to steer clear </a>of the bidding. The reports of Jet’s investor hunt come a day after Jet was unable to <a href="https://www.livemint.com/companies/news/jet-airways-delays-ecb-repayment-amid-liquidity-crunch-1553798519714.html">make a scheduled payment</a> on an external commercial borrowing (ECB) facility owing to a liquidity crunch. The airline has also been unable to pay salaries to its pilots and support staff as well as aircraft vendors. Under the airline’s resolution plan, a consortium of banks, led by SBI, will convert their debt to equity, taking a majority stake of 50.1% in the process. Meanwhile, Goyal, who has resigned as the airline’s chairman and board member, will see his shareholding whittle down <a href="https://www.livemint.com/companies/news/naresh-goyal-resignation-banks-take-over-jet-airways-new-investor-coming-in-1553509713332.html">from 50.1% to 25.5%</a>. Etihad will take a final call on whether to sell its 24% stake in Jet or not <a href="https://www.livemint.com/companies/news/deal-or-no-deal-etihad-to-take-final-call-on-jet-airways-on-31-march-1553467810101.html">on March 31st.</a> SEE ALSO: <a href="https://www.businessinsider.in/jet-airways-chairman-naresh-goyal-steps-down/articleshow/68212261.cms">Jet’s chairman finally agrees to step down, paving way for bank-led bailout</a> <a href="https://www.businessinsider.in/naresh-goyal-and-etihad-statement-may-help-jet-airways-debt-resolution-plan/articleshow/68165797.cms">The threat of bankruptcy forces Etihad and Naresh Goyal to call for truce</a> <a href="https://www.businessinsider.in/lenders-plan-to-keep-jet-airways-afloat-may-put-etihad-in-the-cockpit/articleshow/67451283.cms">Lenders’ plan to keep Jet Airways' afloat may put Etihad in the cockpit</a>

Jet Airways’ desperate search for a new investor takes it to the US, Singapore and UAE

<keyword id="122732" type="PERSON" weightage="80" keywordseo="Naresh-Goyal">Naresh Goyal</keyword>'s <keyword id="6358200" type="CITY" weightage="100" keywordseo="Jet-Airways">Jet Airways</keyword> plans to merge its Low Cost Carrier (<keyword id="125271" type="COMPANY" weightage="40" keywordseo="LCC">LCC</keyword>) <keyword id="47941" type="COMPANY" weightage="40" keywordseo="JetLite">Jetlite</keyword> with its flagship carrier. According to company sources, the management will soon induct pilots from Jetlite to the parent company Jet Airways. 
 
"Nearly 230 pilots will be shifted from Jetlite to Jet Airways. This is a point of concern for us because it may lead to drastic changes in our salary structures as well as our seniority," said a senior pilot who requested anonymity. 
 
He further revealed, "Cramer Ball, CEO of Jet Airways, will be meeting with the company pilots on 9 September to discuss the future plans of the airline with us. Basically, they want to explain their decision to ensure a smoother transition". 
 Other sources told BI India that the management took the decision to transfer pilots from its LCC to Full Cost Carrier (<keyword id="160638" type="ORGANIZATION" weightage="60" keywordseo="FCC">FCC</keyword>) because they want to operate as a single brand. "The management didn't want any confusion regarding their brand. They just want to be known as Jet Airways and not differentiated as FCC and LCC," disclosed a senior official. 
 
Apart from the single-brand agenda, the management wants to aggressively expand its international network. Reports also suggest that airline will focus on deploying higher number of aircrafts on routes to Abu Dhabi, Etihad's base station, to boost profitability. 
 
"Despite the domestic side contributing about 40% to the total business, Jet lost a whopping 15.6% on its domestic operations wiping out any profits made by its bigger and more lucrative international division", said aviation analyst Devesh Agarwal. 
 
Commenting on the issue, Jet Airways spokesperson said, “The Jet Lite Air Operators Permit (AOP) will continue. We currently have excess pilot numbers in Jet Lite and we will be discussing with the Pilots, the options of working with Jet Airways. 
The airline has also announced its plans to reconfigure its fleet, in order to increase the efficiency of its operations. 
 
Interestingly, national carrier Air India, which too merged its domestic wing, erstwhile Indian Airlines and its international airline Air India in 2007, has been facing several HR issues pertaining to the salaries of the pilots. 
 
However, with Naresh Goyal at the helm of affairs in his airline, what remains to be seen is whether Jet Airways will manage a smooth transition or will it face more troubles down the road?

Jet’s Single Brand Agenda Gives Sleepless Nights To Pilots

<ul><li>The cash-strapped airline’s creditors, led by SBI, have reportedly secured the interest of Srichand and <keyword id="375933" type="PERSON" weightage="20" keywordseo="Gopichand-Hinduja">Gopichand Hinduja</keyword>, who together constitute one of the richest families in the UK with a £22 billion fortune. </li><li>The <keyword id="120582" type="COMPANY" weightage="20" keywordseo="Hinduja-Group">Hinduja Group</keyword> will commence the process of due diligence in the airline after obtaining the approval of Jet’s promoters <keyword id="122732" type="PERSON" weightage="20" keywordseo="Naresh-Goyal">Naresh Goyal</keyword> and Etihad to do so. </li><li>The news comes a week after Etihad said it wanted to limit its participation in Jet’s turnaround. The UAE-based airline submitted a conditional bid that stipulated it’s desire to be a minority investor.</li></ul> It seems that Jet’s creditors are counting on a last-minute bid to prevent the airline from going under. The cash-strapped airline’s creditors, led by State Bank of India (SBI), have reportedly secured the interest of Srichand and Gopichand Hinduja, who together constitute <a href="https://www.theguardian.com/business/2019/may/11/hindujas-sunday-times-annual-rich-list-top-spot">one of the richest families</a> in the United Kingdom with a £22 billion fortune. Sources told <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/hindujas-get-backing-of-etihad-naresh-goyal-to-board-jet-airways/articleshow/69420459.cms?from=mdr">ET</a> that the Hinduja Group will commence the process of due diligence in the airline after obtaining the approval of Jet’s promoters Naresh Goyal and Etihad to do so. The group will reportedly work on SBI’s investment banking arm on assessing Jet’s finances. The deal will be costly, however. The sources added that the Hinduja brothers would likely require Jet’s creditors to take a significant discount on their outstanding loans of ₹120 billion. As things stand, the Hinduja brothers are reportedly set <a href="https://www.business-standard.com/article/companies/jet-airways-revival-etihad-hindujas-set-for-abu-dhabi-meet-on-may-23-119052100035_1.html">to meet with representatives</a> from Etihad and SBI in Dubai on May 23rd. The news comes a week after Etihad said it wanted to limit its participation in Jet’s turnaround. The UAE-based airline <a href="https://www.businessinsider.in/etihad-submits-conditional-offer-for-jet-wants-a-majority-partner-to-come-aboard/articleshow/69302138.cms">submitted a conditional bid </a>that stipulated it’s desire to be a minority investor. Etihad said that it would invest a maximum amount of ₹17 billion in the airline to retain its minority stake - 11% of the estimated ₹150 billion needed to kickstart the airline’s revival. This investment is contingent on a capital infusion from the banks. Bidding for a majority stake of as much as 75% in <keyword id="6358200" type="COMPANY" weightage="20" keywordseo="jet-airways">Jet Airways</keyword> ended two weeks ago, and the airline’s creditors <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/jet-airways-lenders-and-etihad-keen-to-issue-boarding-pass-to-hindujas/articleshow/69334306.cms">received only one bid</a> from the entities that it had shortlisted - <keyword id="140808" type="COMPANY" weightage="20" keywordseo="Etihad-airways">Etihad Airways</keyword>. Jet’s creditors have taken a majority stake in the airline and are selling their equity holding to recover their dues. In the event that a mutually beneficial deal isn’t agreed upon and a stake sale doesn’t take place, Jet’s creditors will have no choice but to refer the airline to <keyword id="43550" type="EVENT" weightage="20" keywordseo="Bankruptcy">bankruptcy</keyword> court. SEE ALSO: <a href="https://www.businessinsider.in/etihad-submits-conditional-offer-for-jet-wants-a-majority-partner-to-come-aboard/articleshow/69302138.cms">Jet’s partner Etihad submits a conditional bid for the cash-strapped airline — and wants to remain a minority owner</a> <a href="https://www.businessinsider.in/jet-airways-and-six-more-global-airlines-either-shut-shop-or-merged-says-care-ratings/articleshow/69352600.cms">Jet Airways isn’t the only one, 6 more global airlines have vanished</a>

One of the richest Indian families has its eye on Jet Airways

<ul><li>The state-owned <keyword id="62034" type="COMPANY" weightage="20" keywordseo="Punjab-National-Bank">Punjab National Bank</keyword> has reportedly extended a ₹20.5 billion loan to Jet to keep it operational. </li><li>The funds are mainly for working capital purposes and will be hence be used to pay salaries to airline staff and pilots and more importantly, pay lessors of aircrafts. </li><li>The loan comes amid talks between Jet’s shareholders and creditors to finalise a resolution plan for the airline. </li></ul> As the promoters and creditors of <keyword id="6358200" type="COMPANY" weightage="20" keywordseo="jet-airways">Jet Airways</keyword> negotiate a resolution plan for the struggling airline, one of the Jet’s creditors, the state-owned Punjab National Bank has extended a ₹20.5 billion loan to Jet to keep it operational, according <a href="https://www.livemint.com/companies/news/jet-airways-gets-rs-2-050-crore-loan-from-pnb-1552249762128.html">to Mint. </a> The emergency funding is split in two parts - foreign currency loans of ₹11 billion and a credit facility of ₹9.5 billion. It has been secured against Jet’s liquid assets, including four flight training simulators and its trade receivables. The funds are mainly for working capital purposes and will be hence be used to pay salaries to airline staff and pilots and more importantly, pay <a href="https://indianexpress.com/article/business/aviation/jet-airways-lessors-jittery-over-its-restructuring-plan-5617697/">lessors of aircrafts</a>. Nearly 50 out of 119 Jet aircrafts are currently grounded due to non-payment of rental dues to lessors - which has hurt Jet’s credit rating. Last week, FLY Leasing, one of Jet’s lessors, said it would deploy its planes elsewhere if Jet’s shareholders and creditors didn’t finalise a resolution plan by the end of March. The grounding of planes has led to a cancellation of flights, which has in turn, led to a continued decline in revenues and profits, furthering endangering the airline’s recovery. A sticking point in the negotiations between Jet’s creditors and promoters had been the role of airline owner Naresh Goyal. At the end of February, a meeting of Jet’s creditors and partner Etihad on February 28th paved the way for Goyal’s <a href="https://www.businessinsider.in/jet-airways-chairman-naresh-goyal-steps-down/articleshow/68212261.cms">decision to step down</a> as the airline’s chairman. The next hurdle in the resolution plan involves Jet’s creditors trying to convince Etihad to take greater operational control of the airline. As one of Jet’s major lenders, the loan from <keyword id="47268" type="ORGANIZATION" weightage="20" keywordseo="PNB">PNB</keyword> demonstrates the commitment of Jet’s creditors to finalising a recovery plan for the airline. SEE ALSO: <a href="https://www.businessinsider.in/jet-airways-chairman-naresh-goyal-steps-down/articleshow/68212261.cms">Jet’s chairman finally agrees to step down, paving way for bank-led bailout</a> <a href="https://www.businessinsider.in/naresh-goyal-and-etihad-statement-may-help-jet-airways-debt-resolution-plan/articleshow/68165797.cms">The threat of bankruptcy forces Etihad and Naresh Goyal to call for truce</a>

Punjab National Bank has reportedly given Jet a ₹20.5 billion lifeline to keep it airborne

Private carrier Jet Airways reported a loss of Rs 2,153.57 crore ($366.5) in the fourth quarter of FY2013-14. 
 
The company had reported a net loss of Rs 495.53 crore in the corresponding period last year. 
 
The total income, however, grew about 10% to Rs 4,678.17 crore, the Naresh Goyal- promoted airline said in a filing to the BSE. 
 
The company reported a net loss of Rs 3,667.85 crore in the full fiscal (2013-14). 
 
Its total income in FY2013-14 increased to Rs 17,713.47 crore from Rs 17,403.17 crore in FY2012-13.

Jet Airways Suffers $366.5 Million
Quarterly Loss

<keyword id="122732" type="PERSON" weightage="100" keywordseo="Naresh-Goyal">Naresh Goyal</keyword>’s <keyword id="6358200" type="CITY" weightage="100" keywordseo="Jet-Airways">Jet Airways</keyword> has hit the headlines again as employees are disgruntled over salary delays and their representatives are planning to meet the company’s chief operating officer, <keyword id="1282176" type="PERSON" weightage="100" keywordseo="Hameed-Ali">Hameed Ali</keyword>, on May 28 to resolve the issue. 
 
 “Earlier, the company used to pay salary on the last day of the month. Then the payment date was rescheduled to 7th of every month and thereafter, to 15th, after the airline was hit by a financial crisis. Unfortunately, this has become a new norm and we are paid around the middle of the month even after the Rs 2,060 crore <keyword id="6437601" type="COMPANY" weightage="80" keywordseo="Etihad">Etihad</keyword> deal,” one of the staff members told the media. 
 
It was also learnt that employees had earlier accepted the delayed payment as the company was going through ‘financial turbulence.’ 
 
Jet Airways had suffered a loss of Rs 268 crore in the December quarter of FY2013-14. 
 
A Jet Airways spokesperson said salaries are paid according to a ‘pre-determined schedule.’ 
 
“Jet Airways has always met and will continue to honour all its obligations to its employee,” the airline said in a statement.

Jet Airways Employees To Meet COO To Discuss Salary Delay

The Ministry of Civil Aviation has granted company security clearance for appointing <keyword id="2259341" type="UNKNOWN" weightage="20" keywordseo="Cramer-Ball">Cramer Ball</keyword> as the Chief Executive Officer of <keyword id="6358200" type="CITY" weightage="20" keywordseo="Jet-Airways">Jet Airways</keyword>. The <keyword id="122732" type="PERSON" weightage="20" keywordseo="Naresh-Goyal">Naresh Goyal</keyword> led airline made the announcement in a letter to Bombay Stock Exchange. 
	 “The Ministry of Civil Aviation ('MCA’) has vide its letter dated September 18, 2014, granted the Company security clearance for the appointment of Mr. Ball as CEO,” Jet Airways informed the <keyword id="35140" type="CITY" weightage="20" keywordseo="BSE">BSE</keyword>. 
	 
	Earlier, the airline had informed BSE regarding the approval of Cramer Ball as the CEO of the company by its board of directors in May 2014. “This is to inform you that our Board has approved the appointment of Mr. Crammer Ball as the Chief Executive Officer of our company, subject to all requisite government and regulatory approvals including his security clearance being obtained,” said Arun Kanakal, Company Secretary and Associate Legal Counsel in a letter to the Exchange on 27th May 2014. 
	 
	Ball, 46, is of Australian nationality and has previously held senior positions with international airlines such as Ansett Australia, Etihad Airways, Gulf Air, Kendell Airline and Qantas. He has also served as the CEO of Air Seychelles. 
	 
	Ball took charge as the CEO of the airline since 25th September. Previously, Ball was the acting CEO of Jet Airways.

You Searched For "Naresh Goyal" and got 14 results

A former Jet Airways insider says Naresh Goyal cannot run the airline

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Jet’s chairman finally agrees to step down, paving way for bank-led bailout

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Naresh Goyal resigns from Jet Airways following emergency board meeting

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Jet Airways’ desperate search for a new investor takes it to the US, Singapore and UAE

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Jet’s Single Brand Agenda Gives Sleepless Nights To Pilots

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One of the richest Indian families has its eye on Jet Airways

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Punjab National Bank has reportedly given Jet a ₹20.5 billion lifeline to keep it airborne

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Jet Airways Suffers $366.5 Million Quarterly Loss

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Jet Airways Employees To Meet COO To Discuss Salary Delay

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