Naresh Goyal quits race for Jet Airways; opts out of bidding amid talks of shutdown

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Published: April 16, 2019 1:40:58 PM

Even with the board meeting of Jet Airways underway to discuss the future course of action and amid the talks of temporary suspension of the operations of Jet Airways, the airline’s troubles do not seem to come to an end.

Jet Airways fails to garner interim funding from lenders, extends cancellation of international ops till April 18Even with the board meeting of Jet Airways underway, the troubles of Jet Airways do not seem to be coming at an end. 

Jet Airways’ founder and former CEO Naresh Goyal is no longer in the race to buy stake in the troubled airline, which is up for bidding by potential suitors, PTI reported citing sources. The report said that Naresh Goyal has decided not to bid. This follows and puts rest to the speculation of the lenders’ consortium having selected four suitors for the cash-strapped airline.

Even with the board meeting of Jet Airways underway to discuss the future course of action and amid the talks of temporary suspension of the operations of Jet Airways, the airline’s troubles do not seem to come to an end. The beleaguered airline is struggling to stay afloat with its flights down to less than 10 from the earlier fleet of 119.

The airline is also bereft of fuel supplies and it is expected that it will run out of the fuel by today noon, IANS had earlier said citing sources. “The fuel supply is expected to run out from Tuesday afternoon as fresh payments would be required for vendors,” the report said quoting a source.

Meanwhile, Suresh Prabhu had recently directed The Ministry of Civil Aviation to intervene in the matter and take hold of Jet Airways issue, he announced in a tweet.

The woes of airline may come to an end only if government and lenders intervene. The airline is in dire need of funds and is awaiting infusion of Rs 1,500 crore from the SBI led lenders consortium under the resolution plan which has not come to materialize yet.

Naresh Goyal, who had stepped down from the chairmanship of the airline in March 2019, was reportedly in the race to come back in control by bidding to buy the airline. He had put in the bid on 12 April 2019, the last day of the deadline for application of interest. However, with him withdrawing out, Naresh Goyal may finally lose out on the majority control of the airline which he had founded in 1992.

Jet Airways shares, meanwhile, tumbled in the afternoon trade, falling 10% to the day’s low of Rs 234.65.

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