Independent directors were supposed to safeguard the interest of all stakeholders.
Abu Dhabi-based Etihad Airlines has agreed to halve the number of directors on the Jet Airways Board to two posts under the Rs 2,058 crore deal, giving the Indian promoters 'effective control' of the carrier.
Concerned about the deteriorating financial and operational performance of the Kalanithi Maran-promoted airline, the DGCA had on Friday withdrawn 186 flight slots of SpiceJet and directed it not to take bookings for flights beyond a month.
Etihad to have 2 directors even if it dilutes stake to 15%
Naresh Goyal-led Jet has also changed the shareholders agreement and amended the investment agreement and the articles of association, as suggested by the Foreign Investment Promotion Board, headed by DEA Secretary Arvind Mayaram, official sources said.
'Shouldn't the DGCA ensure both safety and convenience of passengers?' 'And convenience has been a casualty as nobody knows which Jet flight would be grounded next, throwing passengers' plans in disarray,' says Nivedita Mookerji.
'Shouldn't the DGCA ensure both safety and convenience of passengers?' 'And convenience has been a casualty as nobody knows which Jet flight would be grounded next, throwing passengers' plans in disarray,' says Nivedita Mookerji.
'There will be no flying unless the company pays us substantial salaries and provides a road map,' the National Aviators Guild, the pilots union, said in a message to its members.
The Q400 NextGen turboprop aircraft from Bombardier can seat 78 passengers and has low noise and vibration-free features.
Among the other conditions of the Hinduja group for picking up a stake in Jet is that bankers must take a haircut of 80 per cent and that they should help negotiate with operational creditors like aircraft lessors for moratorium on certain immediate payments.
Confirming the resignation of Aggarwal, airline sources said Kishore Gupta, a member of the SpiceJet board, is likely to take over the position for the time being as part of an interim arrangement.
Etihad has purchased 24 per cent stake in Jet Airways in a deal worth about Rs 2,060 crore deal which was announced in April 2013.
The DGCA has allowed SpiceJet to accept advance bookings beyond March 31.
Before buying Marans' stake, Singh's shareholding stood at 1.85%.
Stocks of SpiceJet on Friday surged nearly 10 per cent after the company returned to original promoter Ajay Singh for its revival in a multi-layered deal worth up to Rs 1,500 crore (Rs 15 billion).
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Singh holds more than 36.15 crore shares.
Full service product with complementary meal service would be provided on all domestic flights from December 1, with the buy-on-board concept being discontinued, an airline statement said.
SpiceJet board is likely to pass a resolution within three days after the court order.
Ajay Singh would infuse Rs 1,500 cr in SpiceJet.
Competition Commission has held on to its observation about Etihad gaining joint control in Jet Airways and "significant" rights to appoint directors with a 24% stake purchase, while rejecting a plea to "rectify" its order that approved the deal earlier this month.
At the NSE, the stock zoomed up by 8 per cent to Rs 444.
The resolution plan has to be put to work this month itself. Jet has a debt of over Rs 8,000 crore and needs to make repayments of up to Rs 1,700 crore by the end of March.
SpiceJet would see a capital infusion of Rs 1,500 crore.
SpiceJet's original promoter is closer to taking the management reins.
The difficult period created by some "legacy issues" are over.
SpiceJet put one lakh seats up for grabs.
In a fresh trouble for the budget carrier SpiceJet, aircraft lessors have approached the aviation regulator DGCA, seeking its permission to repossess 11 Boeing planes of the airline, even as its revival plan is under review of the Civil Aviation Ministry.
Additionally, promoter Naresh Goyal and Etihad Airways, which owns a 24 per cent stake in the airline, will infuse around Rs 2,000 crore into the airline, sources aware of the development said.
The airline notification to an exchange does not name the shareholder. It said the fund-raising would be subject to regulatory and corporate approvals.
Etihad's acquisition of 24 per cent stake in Jet Airways was the first FDI in an Indian carrier by a foreign airline.
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'The airline business is very dynamic. If you are unable to keep up and lead, you end up last.' 'This is what has happened to Jet.'
Indian airline SpiceJet Ltd said on Thursday that its billionaire owner, Kalanithi Maran has proposed to transfer majority ownership in the ailing carrier to co-founder Ajay Singh.
But the Abu Dhabi-based airline would first bolster its own network with traffic from India before Jet's turnaround.
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