New Delhi: It was an action packed day for the largest public sector bank (SBI) and the largest private airlines (Jet) on Monday. While Jet Airways Founder and Chairman Naresh Goyal and his wife Anita Goyal stepped down from the board of the ailing airline following reduction in their stake to 25 per cent as per the resolution plan formulated by SBI-led domestic lenders. State Bank of India (SBI) later said that it expects investors for the cash-strapped Jet Airways by the end of May.
It also added promoter Naresh Goyal has option of increasing his stake in the beleaguered airline to beyond 25% in the future. Consortium of lenders led by the SBI has agreed to put in Rs 1,500 crore immediate funding by acquiring 51 per cent stake in the company through issue of Rs 11.4 crore fresh shares.
As a result, the stake of promoter Naresh Goyal will come down to 25 per cent from 50 per cent, while Abu Dhabi’s Etihad Airways, which had a 24 per cent stake in the carrier, came down to 12 per cent. Bidding process to be initiated by lenders for sale to new investor(s), the process expected to be completed in June quarter as per the resolution plan.
“June is too late. My expectation is May 31…market is open for everyone whosoever wants to come in. There will be expression of interest which will be given by April 9 and binding bid by April 30,” SBI Chairman Rajnish Kumar told CNBC TV18.
“It could be financial investor, it could be airline including Naresh Goyal himself or Etihad. Nobody is barred from bidding or taking over the airline as per the rule,” he said. “It could be financial investor, it could be airline…including Naresh Goyal himself or Etihad. No body is barred from bidding or taking over the airline as per the rule,” he said.
Public interest safeguarded: FM
Finance Minister Arun Jaitley said that he was happy with the lenders’ decision regarding Jet Airways as the public sector banks have kept legitimate self-interest and public-interest in mind.
“India needs more aircrafts and airlines otherwise air fares will rise. Banks have kept self interest in mind by trying to keep it as a going entity so that they can recover their dues. I am happy with this decision,” he said here.
Sad day for Indian aviation, says SpiceJet
Low-cost airline SpiceJet said that it was a sad day for Indian aviation as Naresh Goyal and his wife Anita Goyal stepped down from the board of financially-strapped Jet Airways. “Today is indeed a sad day for Indian aviation. By launching a truly world class airline, Naresh and Anita Goyal made India proud,” said SpiceJet’s Chairman and Managing Director Ajay Singh.
“This is also a wake-up call for Indian policy makers,” he said. “We urgently need to address structural challenges that make India’s airlines uncompetitive to airlines around the world,” Singh added. According to reports, SpiceJet is planning to lease Jet Airways’ grounded planes from their lessors. The move is aimed at restoring the aviation industry’s seat capacity and keeping air fares in check.