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Jet Airways chairman Naresh Goyal steps down, halves stake

25 March 2019

Jet Airways founder Naresh Goyal and his wife Anita have stepped down after the board meeting was held today.

On an immediate basis, lenders are expected to give Rs 750 crore to Jet Airways, which would come by pledging the airline's stake in Jet Privilege with banks.

Goyal has reportedly agreed to cut his stake in the airline to 9.9 percent from the earlier 51 percent, CNBC-TV18 said.

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Etihad Airways has two nominees on Jet Airways board of directors, Kevin Knight and Robin Kamark. The statement said that Goyal will also cease to be the chairman. Shares of Jet Airways had jumped over 15% on the National Stock Exchange after the news reports, and closed the day at Rs 261 per share.

Jet Airways has posted losses of over Rs 1,000 crore for three consecutive quarters since March 2018.

Jet Airways, which was founded by Naresh and Anita back in 1993 ran into debt amounting to over $1 billion.

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Even though Jet is not the only airline to bear the brunt of macro factors such as high fuel prices and a depreciating rupee, analysts say the carrier's high debt levels and failure to raise fresh funds have landed it in trouble. It has delayed payments to banks, suppliers, pilots and lessors - some of which have forced the airline to ground as many as 40 planes.

Lenders of the crisis-hit Jet Airways are likely to acquire a substantial stake in the carrier till a new promoter is roped in, sources said last week, a PTI report said. This will enable SBI and PNB to provide emergency funding to keep the airline afloat until a resolution plan is in place.

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Jet Airways chairman Naresh Goyal steps down, halves stake