Jet Airways’ founder Naresh Goyal has agreed to step down as chairman of the airline’s board, a source with direct knowledge of the matter told Reuters on Thursday, as the cash-strapped Indian carrier inches closer to securing a rescue deal.
Eithad, which owns a 24 percent stake in Jet Airways, is however reticent to provide interim funding of about 7 billion rupees ($99 million) to Jet Airways, the source said. Jet did not immediately respond to a request for comment.
Saddled with a billion dollars in debt, Jet has defaulted on loans and has not paid pilots, leasing firms and suppliers for months. Lessors have grounded more than a dozen of its planes pending payment of dues.
Earlier in the day, Jet Airways and its principal shareholders, including Etihad Airways, have said that they are working towards finalisation and subsequent implementation of bank-led provisional resolution plan (BLPRP) to ensure that the carrier re-emerges as a "financially strong and resilient airline."
The approval of the BLPRP by the Board of Directors of Jet Airways last week was an important step in this direction.
"As we move forward, we are confident that once the BLPRP is finalized and implemented, Jet Airways will re-emerge as a viable and robust airline to reclaim its rightful place as the airline of the first choice for its customers," read a joint statement issued on the matter by Jet Airways' Chairman Naresh Goyal and Etihad Airways' CEO Tony Douglas.
Jet Airways has been struggling with financial issues and is looking to rejig debt as well as raise funds.
It is worth to mention here that Jet Airways has been facing a financial crisis with debt to the tune of Rs 7300 crore, causing the airline to default on salary payments of its employees in recent months.
The airline failed to pay full salary to their pilots, aircraft maintenance engineers (AMEs) and other senior-level employees for the month of August.
Jet also delayed the salary of its employees for the month of September, following which the airline issued an apology to its employees, saying they are "working towards a solution on the issue."
(With inputs from agencies)
