Naresh Goyal opts out from bidding process of Jet Airways; flight ops likely to shut down

New Delhi, Apr 16: New Delhi: Jet Airways founder Naresh Goyal has opted out of bidding for stake acquisition in the ailing airline, said reports on Tuesday.

The development came after Etihad Airways and TPG Capital threatened to walk out of the deal if Goyal was a part of it. The full service carrier, which is currently operating less than 10 aircraft, is awaiting fresh fund infusion under a debt resolution plan.

Delaware-based firm named Future Trend Capital, London-based entity called Adi Partners, Etihad, TPG and Indigo Capital are some of the bidders who have submitted their expression of interest (EOI) for the same. SBI Caps will select the qualified bidders on Tuesday. State-run National Infrastructure and Investment Fund are expected to bid directly.

Etihad owns at least 24 per cent of Jet Airways and has said that it wants to continue keeping it that way. Apparently, Etihad had two conditions: Goyal's complete exit from the airline and exemption from a capital markets rule that mandates companies to put an open offer of 20 per cent shares if it has acquired 25 per cent in a company.

Goyal had resigned as the chairman and board member earlier itself. Meanwhile, Jet Airways' top official refused to reply to any query. Both TPG and Etihad spokespersons said they wouldn't comment on rumours and speculation.

Meanwhile, Jet Airways' board meeting is now over and it has been decided that operations is likely to shut down. However, a final call will be taken by the end of the day as the options remain limited. It is being said that all efforts are on to avoid the grounding of the airline.

Earlier, Jet Airways had decided to cancel its services on overseas routes till Thursday, April 18. The same had been confirmed by the beleaguered airline's CEO Vinay Dube in a statement to employees on Monday. The decision was taken following the non-receipt of funds from its lenders, who have now management control of the airline following a debt-restructuring plan last month.

Jet Airways shares, which opened the day on a weak note, further plummeted 18.56 per cent to Rs 213.20 in afternoon trade on the BSE.

The carrier, which was founded more than 25 years ago, has already suspended international operations till April 18.

(with PTI Inputs)