Jet Airways Bends To Bail Terms: Naresh Goyal May Step Down; Etihad’s Stake To Increase To 40 Per Cent From Current 24(Photo by Vijayananda Gupta/Hindustan Times via Getty Images)

Debt-ridden airlines-Jet Airways has reportedly accepted the terms & conditions set by its partner Etihad for offering a lifeline to the domestic airline.

Both the airlines are set to sign a Memorandum of Understanding (MoU) in the next few days which is likely to result in Jet Airways founder chairman Naresh Goyal quitting from the board of directors, which will reduce his stake to 22 per cent from a majority 51 per cent as per reports by The New Indian Express.

Etihad’s stake is set to shoot up to 40 per cent from the present 24 per cent, and if all conditions are adequately met, Etihad will pump in 35 million USD immediately.

Important decisions shall be discussed in a meeting which is scheduled for 14 February followed by a general meeting which is scheduled for 21 February.

Furthermore, Chairman Goyal has agreed on the Gulf carrier’s condition of investing in the airlines at Rs 150 per share rather than the prevailing price of Rs 265.

The debt-ridden carrier has been hit by high oil prices, rupee depreciation, and fierce competition and it owes money to money to vendors, bank and lessors.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement