Contrary to a media report, Qatar Airways has denied that it is in discussion to invest in Jet Airways.
The report said Jet Airways Chairman Naresh Goyal and his son Nivaan gave a presentation to the Qatar Airways management this week following a collapse of negotiations with its strategic partner Etihad Airways.
Qatar Airways has denied any such meeting has taken place.
“What you are hearing is incorrect,” a top executive of Qatar Airways told Business Standard.
Qatar Airways group chief executive officer Akbar Al Baker had ruled out investing in Jet Airways in January until Etihad continued to hold a stake in the airline. “We would look at it (Jet Airways) if Etihad did not hold a 24 percent stake. How can I take a stake in an airline that our adversary owns?” Al Baker had said.
Jet Airways Chief Executive Officer Vinay Dube told pilots earlier this week that the airline was looking for a potential investor.
This was after the pilots decided to stop flying from April 1.
Naresh Goyal, who has been asked to quit the board, is planning his next move to London. He owns 51 percent of the airline.
Industry sources say lenders may ask him to give an undertaking that he and other promoter nominees would step down before releasing emergency loans in the next few days.
The banks will infuse around Rs 1,200 crore into the airline as emergency funding as part of the resolution process. The airline needs this because one-third of its planes have been grounded due to non-payment to lessors.
Following the conversion of debt into equity, lenders will receive 114 million shares in Jet Airways, giving them 50 percent of the airline.
The National Investment and Infrastructure Fund is a likely investor and is expected to contribute Rs 1,900 core to the airline.
Etihad has declined to commit fresh funds and has offered to sell its 24 percent to the State Bank of India, but some industry sources say it may reconsider its stance if Goyal is forced out of the board.
However, fresh capital raising through share sales will happen after getting approvals from the board and regulators, which could take a few weeks.
