The ongoing talks between Tata Sons and Jet Airways could get stuck over Naresh Goyal's plan to keep JetLite out of the deal, and the Tata Group's insistence on a non-compete clause from the aviation veteran.
JetLite is the low-cost arm of Jet Airways and is the erstwhile Air Sahara, which was acquired by Goyal in 2007.
"Goyal is an industry veteran and wants to be active. He will loath to step away completely," said an executive. One of the options being explored, the executive added, is to keep JetLite out of the deal so that Goyal can continue in the aviation industry.
A Jet Airways spokesperson said: "In line with its policy, Jet Airways does not comment on speculation."
But Goyal's continuation in the sector will go against one of the primary conditions of Tata Sons.
While the Tata's may not mind keeping the loss-making unit out of the deal, they may not agree with Goyal's plans.
The N Chandrasekaran-led Group wants a non-compete commitment from Goyal. The clause could prevent the Jet Airways founder from running an airline, and will also force him out of the aviation business. That will be a big call for Goyal, who started off as a travel agent before setting up Jet Airways in 1992.
22/11/18 Prince Mathews Thomas/moneycontrol.com
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JetLite is the low-cost arm of Jet Airways and is the erstwhile Air Sahara, which was acquired by Goyal in 2007.
"Goyal is an industry veteran and wants to be active. He will loath to step away completely," said an executive. One of the options being explored, the executive added, is to keep JetLite out of the deal so that Goyal can continue in the aviation industry.
A Jet Airways spokesperson said: "In line with its policy, Jet Airways does not comment on speculation."
But Goyal's continuation in the sector will go against one of the primary conditions of Tata Sons.
While the Tata's may not mind keeping the loss-making unit out of the deal, they may not agree with Goyal's plans.
The N Chandrasekaran-led Group wants a non-compete commitment from Goyal. The clause could prevent the Jet Airways founder from running an airline, and will also force him out of the aviation business. That will be a big call for Goyal, who started off as a travel agent before setting up Jet Airways in 1992.
22/11/18 Prince Mathews Thomas/moneycontrol.com
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