Ministry Seeks Details Of Jet Airways Deals

The ministry of civil aviation is seeking details of the recent share transactions in Jet Airways. Ministry sources said the letter sent by airline chairman Naresh Goyal to civil aviation minister CM Ibrahim did not contain details like the shareholding pattern and the bankers involved.

Sources pointed out that no proof of the transfer has been made available to the government. It is not clear how the money was raised by Goyal to buy out the shares held by Gulf Air and Kuwait Air at a price of $ 8 million. A press release issued by the company did say that international banks funded the acquisition keeping in view the good track record of Jet Airways.

Sources in the company said if such clarifications were sought, they will be made available subsequently. The sources refused to divulge details of the deal including bankers involved. Naresh Goyal and executive director Saroj C Dutta were not available for comments.

A company press release issued on October 17 said Naresh Goyal, chairman of Jet Airways, has acquired the entire stake in Tail Winds, the holding company of Jet Airways, from Gulf Air and Kuwait Airways for $8 million. With this acquisition, Naresh Goyal, who is a non-resident Indian, will hold the full $20 million equity in the company. Soon after the new aviation policy was announced, the ministry of civil aviation asked Gulf Air and Kuwait Airways, the joint venture partners of Jet to shed their stake from Tail Winds which owns the airline in keeping with the policy that dictated that no foreign airlines will hold any interest in domestic airlines.

Both the foreign airlines held 20 per cent each equity in the company which is registered in Isle of Man, a tax haven. Jet Airways is the largest private airline in the country with a fleet strength of 12 Boeings.