New Delhi: India’s aviation czar Naresh Goyal could soon take his place in history books. After the recent eclipse of Vijay Mallya‘s Kingfisher, it may be the turn of Goyal.
For years, Goyal kept on opposing any move by the government to get foreign airlines to invest in Indian carriers. But the moment FDI was opened up, he sidled up to long-time friends in Etihad Airways to get money for his troubled airline.
However, now even his friends have second thoughts. Etihad is apparently driving a hard bargain and Goyal seems unwilling to give up more than 26 percent equity in his beloved Jet Airways.
The arrival of AirAsia with 49 percent foreign equity, and with the Tatas as junior financial partners, has sent a powerful message to the likes of Etihad. There is no reason why an Etihad should choose to play second fiddle to Goyal in Jet, when it is putting up all the cash.
Goyal is now caught between a rock and a hard place because if the Etihad deal slips through his fingers, he is staring at a bleak future for Jet Airways, which has lost passengers rapidly last year and is now third (standalone) in terms of domestic market share behind IndiGo and Air India.
27/02/13 Sindhu Bhattacharya/First Post.com
