Naresh Goyal likely to step down as Jet Airways CEO as debt-ridden airline agrees Etihad bailout package: Report

Jet airways, the cash-strapped domestic carrier, has reportedly accepted the much-needed bailout package by the Etihad Airways, a Business Standard report said on Friday. According to the report, Jet Airways CEO Naresh Goyal is likely to step down from the top post. Under the bailout package, the two airlines are likely to sign a memorandum of agreement in coming days. Though several media outlets are reporting about the deal, no official confirmation has been made by either Jet or Etihad Airways.

Interestingly, just a day before on Thursday, Jet Airways CEO Vinay Dube had told its employees that the situation of the crisis-ridden airline might get tougher and asked them to be patient. In an email to the employees, Dube said, "It might get tougher before it gets better, and our ascendancy will be gradual, but collectively, with your unstinted support and commitment, we will come out of this a stronger airline."

On Wednesday, Jet Airways had decided to cancel 15 flights following grounding of six Boeing 737 planes due to non-payment of lease rentals. Dube said that the company's chairman, board of directors and the management team are working hard on a balance sheet transaction that will help in eliminating its "current challenges".

On Wednesday, the crisis-ridden domestic carrier had cancelled 15 flights following the grounding of six Boeing 737 planes due to non-payment of lease rentals, a PTI report said. The airline, which is grappling with acute financial woes, cancelled around 20 flights on Tuesday as three more Boeing 737 aircraft were grounded, they added. In two days, the carrier has grounded six such planes following non-payment of lease rentals.

According to the PTI report, the full-service carrier would be holding a meeting of the shareholders on February 21. The airline will seek shareholders' approval for conversion loan into shares or convertible instruments or other securities, according to a regulatory filing.

The carrier would seek shareholders' nod to "convert the whole or part of the outstanding under loans, extended / to be extended by the lenders, into shares, or convertible instruments or other securities, of the company...", according to the notice of the meeting submitted to the stock exchanges.

The conversion will be done as per the terms contained in the respective loan documents between the company and its lenders. It would also be subject to all requisite regulatory approvals.

(With PTI inputs)