Naresh Goyal won’t return to Jet Airways, opts out of bidding for airline he founded

Jet Airways founder Naresh Goyal has decided not to bid for acquiring stake in the cash-strapped airline, sources said on Tuesday (April 16).

The full service carrier, which is currently operating less than 10 aircraft, is awaiting fresh fund infusion under a debt resolution plan.

Airline sources said Goyal, who had stepped down as chairman of the carrier last month, has withdrawn the bid for the airline. On April 12, sources said that Goyal had also put in bid for the carrier.

SBI Capital Markets has the mandate for Jet Airways’ sale on behalf of the SBI-led consortium of the domestic lenders to the debt-ridden private carrier.

Last month, Goyal and his wife Anita Goyal stepped down from the board of the airline, which is under more than Rs 8,000 crores of debt.

On the other hand, Civil Aviation Minister Suresh Prabhu has called for a review of issues related to struggling Jet Airways, including rising fares and flight cancellations.

Prabhu has also asked Civil Aviation Secretary Pradeep Singh Kharola to take necessary steps to protect the rights and safety of passengers.

“Directed Secretary @MoCA_GoI to review issues related to Jet Airways, especially increasing fares, flight cancellations etc,” Prabhu said in a tweet on Tuesday, referring to the secretary of the Ministry of Civil Aviation.

Besides asking the secretary to take necessary steps to protect passenger rights and safety, Prabhu has called for working with all stakeholders for their well-being.

This is the second time in less than a week that Prabhu has publicly said he has called for a review of issues related to Jet Airways.

On Monday, lenders did not take a final decision on providing emergency funds to the cash-strapped carrier.

The airline’s board will be meeting in Mumbai on Tuesday (April 16)

In afternoon trade, shares of the airline declined 3.59 per cent to Rs 252.40 apiece on the BSE(Bombay stock exchange).

Jet Airways is operating around seven planes, including six turbo propelled ones used for shorter hauls. It had 123 aircraft in operation in December.

“As you are aware, we have been working with the lenders to secure interim funding for our operations. The interim funding has not been forthcoming thus far, and as a result we have extended cancellation of international operations until April 18,” the airline’s CEO Vinay Dube said in an internal communication on Monday.

On March 25, the airline’s board approved the debt resolution plan, under which SBI-led consortium would provide an emergency loan of Rs 1,500 crore and also take control of the carrier.

Updated: April 16, 2019 — 2:43 pm