From Q1 loss to talks of sale of airline, a timeline of Naresh Goyal-owned Jet Airways' turbulent journey

Jet Airways Ltd, the biggest full-service carrier in India, has been under dark clouds for the past few months. [caption id=“attachment_5554021” align=“alignleft” width=“380”] Representational image. Reuters[/caption] While intense pricing competition, weak rupee and rising fuel costs have hurt Indian airlines like IndiGo owned by InterGlobe Aviation Ltd and SpiceJet Ltd, Jet Airways is in a league of its own. Saddled with a debt of about 80.52 billion rupees ($1.14 billion) as of 30 September, Jet is desperately searching for a deal that could help mitigate its severe liquidity crunch. The airline has a market capitalisation of 35.03 billion rupees as of last close. The Tata conglomerate is now likely to be the potential white knight for the debt-laden company, but no proposal has been made yet. Here’s how the story unfolded: 3 May: Jet shares fall 12.3 percent after InterGlobe Aviation reported a slump in net profit for March-quarter a day earlier 23 May: Jet posts first quarterly loss in at least 12 quarters, says it has a negative net worth that ‘may create uncertainties’ 1 Aug: Media report says Jet asked employees to take an up to 25 percent cut in salaries as a part of a cost-cutting measure 3 Aug: Jet denies report that it cannot fly beyond 60 days, and dismisses conjecture of stake sale 9 Aug: Airline defers board meet for first-quarter results 11 Aug: After State Bank of India chairman says Jet’s loan is on the bank’s watch list, Jet says it is regular in payment obligations to all banks 13 Aug: Airline reaffirms that it is considering various options to meet its funding requirements 15 Aug: Report says US private equity firm Blackstone Group LP is in talks to buy a stake in Jet’s frequent-flier loyalty programme JetPrivilege 20 Aug: Sources tell Reuters that private equity firm TPG Capital is considering investing in Jet, but is not close to finalising a deal 27 Aug: Jet posts loss for the June-quarter, says it will inject funds and cut costs by more than 20 billion rupees in two years 4 Sept: Government plans relief package for airlines 6 Sept: Jet says it paid salaries to 84 percent of its employees after reports emerge that pilots warned ‘non-cooperation’ over salary default 20 Sept: Income Tax department conducts survey at Jet’s premises • Over two dozen passengers on a Jet flight are treated for minor injuries after the plane loses cabin pressure 4 Oct: Rating agency ICRA downgrades here the company’s long-term loans and NCDs, citing the impact of a steep increase in jet fuel prices, rupee depreciation, delay in implementation of liquidity initiatives 18 Oct: Report says Indian conglomerate Tata Group is in talks to buy a stake in Jet. Jet calls report “speculative” 30 Oct: US-based Delta Air Lines Inc expresses interest to buy Jet stake from promoter Naresh Goyal and Etihad Airways 5 Nov: Report says Tata aims to buy the 51 percent stake in the airline owned by Naresh Goyal, and Etihad Airways’ 24 percent stake, and merge Jet with Vistara 12 Nov: Jet posts third straight quarterly loss, chief executive officer Vinay Dube expresses confidence in overcoming current challenges 13 Nov: Tata Sons begin due diligence to buy Jet, reports say • Jet executive says company is in talks with multiple parties for a stake sale in its loyalty program, and equity infusion in the airline 15 Nov: Shares surge nearly 25 percent following reports that the debt-laden airline was nearing a rescue deal with Tata Sons; another report says the Indian government asked Tata to explore buying Jet 16 Nov: Tata Sons says discussions on Jet is preliminary and no proposal has been made 20 Nov: Tata Sons may go slow on Jet deal after some directors from Tata’s board expressed concerns, according to media reports 21 Nov: The airline says news on Naresh Goyal, Etihad discussing merger of JetPrivilege with Jet Airways is speculative 22 Nov: Independent director Ranjan Mathai resigns, citing rising pressure from other commitments 26 Nov: Report says Naresh Goyal may hand over Jet Airways operations to Etihad Airways.