A Jet Airways passenger plane parked at Singapore’s Changi Airport is framed by two visitors. (Photographer: Jonathan Drake/Bloomberg News)

Jet Airways’ Board Mulls Fundraising Without Getting A New Investor

Jet Airways' board on Thursday discussed ways to raise funds without taking an investor on board as chairman Naresh Goyal doesn't want to give up control in the loss-making carrier he set up 25 years ago, according to a person aware of the development.

Various cost-reduction measures also came up for discussions, the person said, at an unscheduled four-hour long board meeting at the airline’s headquarters in Mumbai.

In the red for three consecutive quarters, Jet Airways has been gasping for funds to keep the airline afloat amid liquidity crunch.

Rating agency ICRA has downgraded Jet Airways' long-term rating for the second time in recent months and its largest lender, State Bank of India, ordered for a "forensic" audit of the listed airline's books.

Also read: Jet Airways To Pay Salaries In Instalments To Senior Staff Till April

The person said that Goyal wants the management to find out ways and means to resurrect the airline.

Notably, Goyal retaining control was reportedly a major issue that became a roadblock in Jet Airways’ talks with Tata Sons for a possible stake sale over a month ago.

The person said during the meeting it was also discussed how the airline can prune costs further and make it viable in the long-term.

A query sent to a Jet Airways spokesperson remained unanswered.

The person said besides Goyal, the meeting was attended by board members Ashok Chawla, Nasim Zaidi and Rajshree Pathy, and Hamid Ali, the group chief financial officer and Goyal’s key negotiator during the stake sale talks with Etihad in 2013.