Jet Airways' founder Naresh Goyal has agreed to step down as chairman of th...
NEW DELHI - Jet Airways’ founder Naresh Goyal has agreed to step down as chairman of the airline’s board, two sources with direct knowledge of the matter told Reuters on Thursday, as the cash-strapped Indian carrier struggles to finalize a rescue deal.
The rising dominance of low-cost carriers like IndiGo in a price sensitive market as well as high oil prices, hefty fuel taxes and a weak rupee have left Jet strapped for cash. The troubles at Jet have rekindled memories of Kingfisher Airlines’ collapse in 2012 that forced lessors to write off millions of dollars. Jet’s lessors are growing increasingly skeptical about the carrier’s ability to pay its dues, sources have told Reuters.
SBI subsequently held a meeting with Jet Airways and its 24 percent shareholder Etihad but no consensus was reached on some of the aspects of the bailout deal, one of the sources said.Etihad is reluctant to put more money into the airline including interim funds of about 7 billion rupees , one of the sources said.
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