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aviation

to 49 per cent under the current regu-
lation? Jet Airways, which has been fac-
ing financial turbulence for a while, has
been in talks with potential investors
to raise fresh equity. The various fund-
raising options it has explored include
a stake sale in its loyalty programme, Jet
Privilege Pvt Ltd, and a stake sale in the
airline to the Tata group.
While the stake sale in the loyalty
programme drew interest from several
private equity funds, including TPG
Capital and Blackstone Group, discus-
sions with the Tata Group ended over
Goyal’s future role at the airline. As per
the reports circulating in media, Goyal’s
stake may be halved and SBI would hold
over 20 per cent stake in the airline.
While the finer details are still be-
ing worked upon, the broader contours

It is learnt that
the airline is in
talks with Etihad
a second time
and with Indian
conglomerate
Tata Sons for
fresh funds or a
the CEO of Jet Airways for 14 years and • Stake in the air Founder Naresh Goyal holds stake sale
was brought in by the promoter Nar- a 51 per cent stake in the airline
esh Goyal himself in May 2018 has left
suddenly. will be in force by 31 March this year.
This would be well before the 180-day entail that Goyal and Etihad will to-
Bailout plan period under the Reserve Bank of In- gether infuse $450 million in the com-
And now the news is circulating in the dia’s 12 February circular. The 12 Febru- pany, while the banks will restructure
markets that local lenders to Jet Air- ary RBI Circular relates to how lenders another $450 million of the airline’s
ways (India) Limited, , led by State Bank need to deal with stressed assets. The debt. Sources said that the SBI has ap-
of India (SBI), have proposed a $900 circular said a resolution professional pointed Earnest and Young to conduct
million resolution plan, comprising should be appointed within 180 days a forensic audit into Jet Airways’ books
fresh equity infusion and restructuring for defaulting accounts with aggregate from April 1, 2014, to March 31, 2018. The
of $450 million of its loans. The Jet Air- exposure of 2,000 crore and above. process is underway. Etihad Airways is
ways’ turnaround plan, if approved by The rating agency ICRA Ltd has cut Jet’s said to have offered to guarantee loans
all stakeholders, will trigger a change in ranking from C to D. It is learned that worth $150 million for Jet Airways to
Jet Airways’ shareholding, with founder as part of the restructuring, the lend- keep the airline operational. Will all
Chairman Naresh Goyal’s stake falling ers have also proposed a moratorium these bailout Jet Airways out of finan-
below the current 51 per cent. on repayments on loan facilities, which cial strains? That still remains a big
Highly placed sources told that the are due till April. question.
final plan will be effective by the end of Will Goyal give operational control
January 2019 and the resolution plan to Etihad, which can increase its stake letters@tehelka.com

Tehelka / 31 january 2019 55 www.Tehelka.com