DNA Edit: Jet hopes to soar – The long journey to recovery has just begun

With Naresh Goyal no longer the Chairman of Jet Airways, the airline’s chances of survival have strengthened. The consortium of lenders led by SBI has agreed to pump in Rs 1500 crore as emergency funds to meet the immediate requirements such as salaries for the staff. Goyal’s presence at the helm was delaying the process of revival. The government, too, was reluctant to shut down the airline as it would have led to massive job-losses. But how long can employees work without getting paid? Jet Airways’ domestic pilots body, the National Aviators Guild (NAG), wants a meeting with State Bank chairman Rajnish Kumar over pending salaries. Driven to desperation, the guild had announced recently that its members would stop flying from April 1 if their salaries dues were not cleared. It had also sought clarity on the revival roadmap by March 31. Jet’s financial woes had been mounting for sometime now but Goyal didn’t think it necessary to opt for a course correction. He took a lot of time to step down from the board if only to secure his stakes. But in the new order of things, Goyal will have to listen to the lenders and follow their instructions. However, Goyal won’t be barred from bidding since the sale is happening because of the bankruptcy process. Jet Airways Ltd’s shares climbed as much as 9 per cent to Rs 277 on BSE on Tuesday to a near two-month high after Goyal’s exit. Jet’s debt burden runs into more than $1 billion. It has failed to pay or delayed payments to banks, suppliers, pilots and lessors, some of which forced the airline to ground as many as 40 planes. It will be a slow recovery for the airline, provided Goyal stays away from the process.