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Agence France-Presse

Naresh Goyal, the founder of India’s troubled Jet Airways stepped down as chairman and left the company board as part of a rescue plan, said the firm on Monday.
Jet, which has debts of more than US$1 billion, said in a statement that its creditors would inject up to US$218 million of “immediate funding support” into the airline.
The statement said it would also issue 11.4 million new shares.
Indian media reports said that Goyal’s stake in Jet will fall to half the current 51 per cent.

The Mumbai-based carrier, which until turbulence recently was India’s second biggest airline, has been forced to ground three-quarters of its 119-aircraft fleet as it was unable to pay aircraft lessors.
Its pilots have also complained of delays in receiving their salaries, while the firm also defaulted on loan payments.
Thousands of customers have been stranded in recent weeks after hundreds of flights were cancelled, in some cases with little or no notice.
Crisis at Indian airline Jet Airways worsens as government steps in and pilots threaten strike
Jet, founded by Goyal in 1993, employs more than 20,000 people.
A collapse would deal a blow to Prime Minister Narendra Modi’s pragmatic pro-business reputation ahead of elections starting on April 11.
India’s air passenger numbers have rocketed six-fold over the past decade with its middle class taking advantage of better connectivity and cheaper flights.
The country’s aviation sector is projected to become the world’s third-largest by 2025.
But like other carriers Jet has been badly hit by fluctuating global crude prices and a weak rupee, as well as fierce competition from budget rivals.
Asia’s aviation industry is booming, so why isn’t it making money?
Alarm bells for Jet first rang in August when it failed to report its quarterly earnings or pay its staff, including pilots, on time. It later reported a loss of US$85 million.
In February, it secured a US$1.19 billion bailout from lenders including State Bank of India to bridge a funding gap.
But the crisis has further deepened since, reportedly due to a stalemate in talks between Goyal and the airline’s other major stakeholder, Etihad.
During a previous crisis in 2013, the airline was rescued by Abu Dhabi-based Etihad with a US$600-million capital investment.

Press reports have suggested that Etihad wanted to reduce its stake.
Goyal remaining on the board and being the controlling shareholder has long been a point of contention with Jet’s lenders.
Goyal, 69, was India’s 16th richest person according to Forbes magazine in 2005. He currently does not feature in the list.
The son of a jewellery merchant in India’s Punjab, Goyal dabbled as a public relations manager for Iraqi Airways and also worked as a regional manager for Philippine Airlines before launching Jet Airways.
“With Goyal stepping down, the company can engineer a comeback and revive the airlines,” said Devesh Agarwal, editor of the Bangalore Aviation website.
“Ultimately, banks will own the airline now and need to find the right leadership immediately and inject funds to contain the crisis,” Agarwal added.


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India

Founder of Jet Airways Naresh Goyal quits as troubled airline scrambles to stay afloat

Naresh Goyal, founder of Jet Airways. Photo: EPA

A Jet Airways aircraft is seen parked at a hanger at Chhatrapati Shivaji Maharaj International Airport in Mumbai, Monday, March 25, 2019. The chairman of India’s private Jet Airways has quit amid mounting financial woes forcing the airline to suspend operations on 14 international routes with more than 80 planes grounded. (AP Photo/Rafiq Maqbool)

FILE PHOTO: A Jet Airways passenger aircraft prepares to land at the airport in the western Indian city of Ahmedabad August 12, 2013. REUTERS/Amit Dave/File Photo

Crisis at Indian airline Jet Airways worsens as government steps in and pilots threaten strike

A Jet Airways plane parked in Mumbai as another moves to a runway. Photo: Reuters

Indian Defense Minister Nirmala Sitharaman, center, Civil Aviation Minister Suresh Prabhu, right, and Karnataka state Chief Minister H. D. Kumaraswamy release a coffee table book during the inaugural ceremony of Aero India 2019 at Yelahanka air base in Bangalore, India, Wednesday, Feb. 20, 2019. Aero India is a biennial event with flying demonstrations by stunt teams and militaries and commercial pavilions where aviation companies display their products and technology. (AP Photo/Aijaz Rahi)

A Jet Airways Boeing 737 MAX 8 aircarft is seen parked inside a hanger during its induction ceremony at the Chhatrapati Shivaji International airport in Mumbai, India, June 28, 2018. Picture taken June 28, 2018. REUTERS/Abhirup Roy

Asia’s aviation industry is booming, so why isn’t it making money?

More fierce competition among Southeast Asia’s airlines is expected this year. Photo: Alamy

An All Nippon Airways (ANA) jetliner(back) rolls over for take off at Haneda International airport in Tokyo on July 29, 2015. ANA said on July 29 its net profit more than doubled to 68 million USD for the April-June quarter thanks to strong results in its international business on the back of a weak yen. AFP PHOTO / TOSHIFUMI KITAMURA

Photo: Bloomberg

Image showing a Air Asia aircraft taxiing to gate, taken from Terminal 2 of the Hong Kong International Airport in Chek Lap Kok. 27MAY18 SCMP / Roy Issa

J0BMXN 9M-MNB Malaysia Airlines Airbus A380-800 cn-081 Photo : ALAMY [FEATURES 2018]

(FILES) This file photo taken on November 24, 2014 shows a Thai Airways aircraft taking off past the tails of two other Thai Airways planes at Bangkok's Suvarnabhumi international aiport. Thailand's flagship airline on January 19, 2017 said it had launched a probe into revelations that Rolls-Royce paid millions of dollars in bribes to win contracts, including to airline employees and government officials. / AFP PHOTO / CHRISTOPHE ARCHAMBAULT

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The airline, which has debts of more than US$1 billion, said in a statement that its creditors would inject up to US$218 million of ‘immediate funding support’
Thousands of customers have been stranded in recent weeks after hundreds of flights were cancelled and Jet has been has been forced to ground three-quarters of its fleet as it was unable to pay aircraft lessors


The airline, which is more than US$1 billion in debt, said its creditors would inject up to US$218 million of ‘immediate funding support’.


Aviation