10 points: Why Jet Airways founder Naresh Goyal, wife, step down from board
Jet Airways promoter and founder Naresh Goyal on Monday resigned from the company's board. The resignation followed the airline board's meeting in Mumbai on the day to decide on ways to procure interim funding as well as the future role of Goyal.
New Delhi, March 25: Jet Airways promoter and founder Naresh Goyal on Monday resigned from the company's board. Here are the 10 highlights of the story:1. The resignation followed the airline board's meeting in Mumbai on the day to decide on ways to procure interim funding as well as the future role of Goyal.2. Sources said Goyal tendered his resignation at the emergency board meeting. "The main agenda, however, is to get interim funding," said a source.3. It was expected that after the meeting the State Bank of India, which is the lead lender of the consortium of bankers that lent to the airline, will infuse more funds.4. According to industry estimates, Jet's total debt stood at Rs 8,000 crore.
5.The company urgently needed funding to maintain whatever was left of its market shares, even as the airline pilots and crew were said to be approaching other airlines for employment.6. The airline's pilots along with engineers and another highly critical segment of employees have not been paid salaries from January 1, sources said.
7. 12.5 per cent of December pay was given.
8. Naresh Goyal is in London and is likely to address his employees from there.
9. The current CEO Vinay Dube is expected to stay on and steer Jet out of the current crisis.
10. Jet's lenders' consortium may invoke the entire 51% stake of Naresh Goyal in the airline, and start looking for a new buyer in the weeks to come.