Finance Minister Arun Jaitley Monday said he was happy with the lenders’ decision regarding Jet Airways as the public sector banks have kept legitimate self-interest and public-interest in mind.
After weeks of uncertainty over the future of ailing Jet Airways, the airline’s board has approved immediate fund infusion of up to Rs 1,500 crore by lenders as well as the conversion of debt into equity.
About the developments at Jet Airways, Jaitley said this was a decision that creditors have taken and that the public sector banks have kept a legitimate self-interest and public-interest in mind.
“India needs more aircraft and airlines otherwise airfares will rise. Banks have kept self-interest in mind by trying to keep it as a going entity so that they can recover their dues. I am happy with this decision,” he said.
Indian lenders, led by the State Bank of India (SBI), would become majority shareholders in the airline.
Besides, the lenders would nominate two members on the airline’s board. As part of the debt resolution plan, piloted by the SBI, the carrier’s founder and chairman Naresh Goyal, his wife Anita Goyal and Etihad Airways’ nominee director Kevin Knight are quitting the board.