NEW DELHI: Amid reports of the UAE-based Etihad Airways increasing its stake in Jet Airways, the cash-strapped national carrier on Monday announced the appointment of industry veteran Robin Kamark as the nominee director of stakeholder Etihad Airways PJSC.
Kamark, who has spent 17 years at Scandinavian Airlines System, will replace Harsh Mohan as the nominee director.
Struggling to make payments on every front, fresh reports indicate that Jet Airways founder Naresh Goyal could ask Etihad Airways to increase stake in the airline he founded over 26 years ago. Sources indicated that Goyal and senior officials from Jet recently held a meeting with the top management of Etihad and group CEO Tony Douglas.
Etihad Airways owns 24 per cent in Jet, while Goyal and his wife Anita hold a 51 per cent stake. According to reports, after the stake sale, Etihad may end up owning 49 per cent of the expanded equity base.
In exchange for funds through equity and soft loans, Goyal is considering handing over operations to Etihad, while retaining his position as the chairman of the airline.
According to aviation experts, said it makes more sense for Etihad to take the control of the struggling airline as around 11 per cent of Etihad’s current passengers originate from India and the number is only expected to grow in future.
However, the only thing that may stop Etihad from increasing its stake in Jet is its current financials (it reported $1.52 billion in losses for 2017) and its past joint ventures with other airlines. As for Goyal & Co, Etihad is a better option than the other interested player, the Tata Sons Ltd.
“With Etihad, Goyal would not have to leave his position, unlike Tata’s reported offer that seeks full control of the airline with a Board,” said an aviation observer, requesting anonymity. Earlier this month, it was reported that Tata Sons was in preliminary talks with the debt-laden Jet, but has not made a proposal to acquire a stake.
Jet recently reported its third consecutive quarterly losses for the quarter ending September, and is currently scrambling for funds to tide over a liquidity crisis that resulted in delayed salaries as well as payments to some vendors.
Continuing its belt-tightening measures, the carrier on Monday reportedly handed over pink slips to around 16 more employees. These employees were working as ground staff in Jet Airway’s Kochi and
Hyderabad offices.