Insta
Etihad Gets Its Way: To Raise Stake To 49 Per Cent In Jet, Naresh Goyal To Give Up Control, Says Report
(Peter Macdiarmid/Getty Images)
Etihad Airways PJSC, the UAE-based airline, is expected to increase its stake in Jet Airways to 49 per cent after the latter’s founder-chairman, Naresh Goyal agreed to give up majority control, reports Business Standard (BS).
According to CNBC-TV18, Mr Goyal’s stake, which stands at 51 per cent, could decrease to twenty per cent following the new arrangement. His voting rights on the board could also be restricted to ten per cent.
It was earlier reported that Etihad had insisted that Mr Goyal give up his control in the management of the airline as a prerequisite for investment. Not satisfied with this, the chairman went about looking for investors who would not make such demands on him.
Presently, Etihad has a minority stake of 26 per cent in the financially-stressed airline. Also, it should be noted that according to government’s FDI (Foreign Direct Investment) policy in aviation, a foreign company can only hold upto 49 per cent stake in an Indian airline company.
Another Kingfisher-In-The-Making?
Jet Airways has been saddled with over Rs Rs 8,620 crore of debt as on 30 June 2018. It also reported its second consecutive quarterly loss of over Rs 1,300 crore last year.
Such precarious finances placed the airline in a similar position to that of Kingfisher airlines in 2011.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.
Latest
