Naresh Goyal steps down from Jet Airways board, ceases to be Chairman

Naresh Goyal Chairman of Jet Airways speaks during a news conference in Mumbai

Naresh Goyal Chairman of Jet Airways speaks during a news conference in Mumbai

As per media reports, the lenders had pushed Naresh Goyal to exit the debt ridden company to inject funds in the airline.

As part of the debt resolution plan, piloted by SBI, the carrier's founder and chairman Naresh Goyal, his wife Anita Goyal and Etihad Airways' nominee director Kevin Knight are quitting the board.

Jet's board also approved a plan that will help the airline keep afloat.

A bidding process will be initiated for new investors, which is expected to be completed in the June quarter.

"Immediate Funding support of up to Rs 1,500 crore by lenders by way of issue of appropriate debt instrument against security of its assets which will restore normalcy to Company's level of operations", it said.

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Jet Airways, which is facing a severe cash crunch, defaulted on a domestic loan repayment in December. Some of its lessors have begun terminating lease deals, forcing Jet to ground many planes.

He also said that it was a wake-up call for Indian policy makers. "The airline's robust and long-term operating plan focuses on revenue enhancement and cost optimisation as the fundamental pillars of building a healthy, growing and durable airline", it said.

Before Jet informed the stock exchanges of the board decisions, the Press Trust of India cited corporate affairs secretary Injeti Srinivas as saying that negotiations between creditors and cash-strapped Jet would be better than bankruptcy proceedings. But, if you get a cancellation message with more than three days left for the flight, Jet Airways has opened up a separate website to get you accommodated on another flight if possible.

Saving Jet is crucial for Indian Prime Minister Narendra Modi as he looks to avoid thousands of job losses ahead of a general election.

According to reports, Etihad's stakes in the company will be halved from 24 per cent to 12 per cent while Goyal's stake will be reduced to 25.5 per cent from the existing 51 per cent.

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