Goyal, Branson may go for equity swap

Naresh Goyal's Jet Airways may swap equity with Richard Branson's Virgin group for acquiring a stake in Belgium-based Brussels Airlines.
The Virgin Group, promoted by Branson, holds a 29.9 per cent stake in SN Airholding, the parent of Brussels Airlines. The move would be a masterstroke for Goyal's Jet Airways as it will give airline a commanding lead over its private peers such as Kingfisher Airlines, which are still working their way for permits to fly overseas.
Wolfgang Prock-Schauer, chief executive officer, Jet Airways, said, "I cannot comment on this. There are no concrete plans on this."
Analysts believe that the move makes eminent sense for the Indian entrepreneur, as it would help him, in one single stroke, to add several destinations from its European hub in Brussels for Indian travellers.
Brussels Airlines and Jet Airways already share facilities in Brussels and are now moving towards a code-sharing agreement.
The news of a swap deal between Branson and Goyal was first reported by Trends-Tendances, a Belgian magazine. The magazine valued the equity swap deal at four Jet Airways shares each for one SN Airholding (the holding company of Brussels Air) share. SN Airholding's board of directors was scheduled to meet late on Thursday night, according to Trends-Tendances.
08/11/07 Rabin Ghosh/DNA Money/Sify.com

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Categories: Foreign Nov 2007, Jet Airways Nov 2007, New Nov 2007