Ousted Jet Airways CEO Offers Airline $36 Million

Former Jet Airways CEO Naresh Goyal hasn’t lost his attachment to Jet Airways, despite resigning from the company. It’s understandable, as he has been with the airline since its inception in 1993. If anyone in India knows Naresh Goyal, it is because of his work building Jet Airways into a formidable airline. However, he did come under a fair bit of criticism prior to Jet’s collapse. Now, Goyal is having another attempt at reviving Jet Airways.

Naresh Goyal is still trying to revive Jet Airways. Photo: Jet Airways

Naresh Goyal introduces a new offer

Livemint reports that Naresh Goyal sent a letter to Jet Airways employees regarding his interest in seeing a Jet Airways revival. The letter was not intended to be public. However, it is reported that Goyal is hoping for a new bid for Jet Airways by May 10th, 2019.

Naresh Goyal indicated that he has offered ₹250 crore to banks as a way to help erase some of Jet’s looming debt. This is equivalent to around $36 million United States dollars. While this is a huge sum of money, it barely makes a dent in Jet’s total debt. Jet Airways is over $1 billion USD in debt.

Naresh Goyal has offered $36 million towards reviving Jet Airways. Photo: Vikas Gupta/Wikimedia

The letter was sent to employees to acknowledge the difficulty they’ve had in receiving salaries due to Jet’s financial situation. In addition, Goyal reportedly highlighted the contribution of the employees towards Jet Airways. 

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Jet Airways Cabin Crew
Naresh Goyal penned the letter to Jet Airways employees. Photo: Jet Airways

The future for Jet Airways

The State Bank of India is working on finding investors for Jet Airways. Compared to the attempted privatization of Air India, Jet Airways’ sale seems to be going much better. The Economic Times reports that Etihad Airways, TPG Capital, and Indigo Partners are just some of the few different groups who have expressed interest in acquiring the carrier.

Until the bidding period closes, there could still be room for a wildcard entrant, such as Delta, to get involved. With Delta’s recent announcement of flights to India, they could have a strong interest in offering passengers connections throughout India. Delta Air Lines previously partnered with Jet Airways prior to their collapse. They are already working on Alitalia’s sale and restructuring plan.

Jet Airways previously closely coordinated with Delta and KLM. Photo: Delta

While Delta is relatively new to this game, Etihad Airways has been here before. They have made some disastrous airline investments that cost them greatly. It is interesting to see Etihad looking at reviving Jet Airways, considering they are engaged in a major cost-cutting program following their recent significant losses.

Jet Airways also has to contend with raising up a new fleet. Recently, Vistara has shown a keen interest in Jet’s former 777s. Vistara would use these aircraft for new international routes. It would also help them establish a solid footing in the Indian aviation market as a competitor to Air India.

A Jet Airways Boeing 777-300ER
Vistara is eyeing Jet’s 777s for their international expansion. Image Source: Jet Airways

Many aircraft have already been deregistered, and some have gone on to join rival carriers. SpiceJet even launched a business class after taking over some of Jet’s 737 aircraft.

Overall

Naresh Goyal really loves Jet Airways. He’s been with the carrier for over 25 years. It is understandable why he wants to see the airline revived.

It will be interesting to see what becomes of Jet Airways (if it does get revived). What will be more interesting is to see how former CEO Naresh Goyal fits into the picture.

Would you like to see Jet Airways be revived? Let us know in the comments!

1 comment
  1. I would love to see jet airways revived
    after jet airways stop operation the rival carriers have increased their prices providing no even half the quality of service of what jet airways gave.
    It was sad to see that the government showed less interest in such a good aircraft and kept funding and wasting their money for poor quality air India.

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