PSBs have kept public interest in mind, says Arun Jaitley on decision regarding Jet Airways

Jet Airways' board has approved immediate fund infusion of up to Rs 1,500 crore by lenders as well as conversion of debt into equity

Press Trust of India March 26, 2019 08:59:51 IST
PSBs have kept public interest in mind, says Arun Jaitley on decision regarding Jet Airways
  • Finance Minister Arun Jaitley on Monday said he was happy with the lenders' decision regarding Jet Airways

  • The airline's board has approved immediate fund infusion of up to Rs 1,500 crore by lenders as well as conversion of debt into equity

  • Jaitley said this was a decision that creditors have taken and that the public sector banks have kept a legitimate self-interest and public-interest in mind

New Delhi: Finance Minister Arun Jaitley Monday said he was happy with the lenders' decision regarding Jet Airways as the public sector banks have kept legitimate self-interest and public-interest in mind.

After weeks of uncertainty over the future of ailing Jet Airways, the airline's board has approved immediate fund infusion of up to Rs 1,500 crore by lenders as well as conversion of debt into equity.

PSBs have kept public interest in mind says Arun Jaitley on decision regarding Jet Airways

File photo of Union finance minister Arun Jaitley. PTI

About the developments at Jet Airways, Jaitley said this was a decision that creditors have taken and that the public sector banks have kept a legitimate self-interest and public-interest in mind.

"India needs more aircraft and airlines otherwise air fares will rise. Banks have kept self interest in mind by trying to keep it as a going entity so that they can recover their dues. I am happy with this decision," he said.

Indian lenders, led by the State Bank of India (SBI), would become majority shareholders in the airline.

Besides, the lenders would nominate two members on the airline's board. As part of the debt resolution plan, piloted by the SBI, the carrier's founder and chairman Naresh Goyal, his wife Anita Goyal and Etihad Airways' nominee director Kevin Knight are quitting the board.

Updated Date:

also read

How a growing aviation sector in China led US, EU to settle dispute between Boeing and Airbus
World

How a growing aviation sector in China led US, EU to settle dispute between Boeing and Airbus

With this, an epic 16-year-old dispute over support for airplane makers appears to be heading for an end, at least for now

Sensex tanks nearly 600 points in early trade; ICICI Bank, SBI track losses
Business

Sensex tanks nearly 600 points in early trade; ICICI Bank, SBI track losses

The BSE index was trading 596.78 points or 1.14 percent lower at 51,747.67, while NSE Nifty tumbled 175.35 points or 1.12 percent to 15,508