Shares in India’s Jet Airways jumped over 18% today when news surfaced that Jet’s founder and chairman Naresh Goyal has agreed to step down from the board Jet Airways and give up majority control.
The 25-year-old airline is facing a number of financial difficulties, and it was likely to finalise a resolution plan with its lenders this week, and that Goyal would trim his 51% stake to 20-25% and agree to voting rights on his stake being capped at 10%, in a bid to save the debt-laden company.
Etihad may then infuse capital into Jet and raise its stake from its present 24%. Earlier, Etihad was unwilling.
Cash-strapped Jet presently owes money to pilots, lessors and vendors.
Jet has also defaulted on debt payments to a consortium of Indian banks and its lessors. It has earlier been reported that crisis talks between Jet and aircraft lessors had failed to ease the row over late payments, prompting some lessors to explore repossessing their aircraft.