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India's Jet Airways founder held at Mumbai Airport




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Jet Airways flights are seen parked at Chhatrapati Shivaji Maharaj International Airport in Mumbai.

Image Credit: AP

Mumbai: Indian Immigration Authorities Saturday, former Jet Airways chief Naresh Goyal and his wife stopped traveling to London, an official said, months after they owed the company due to their fleet.

Goyal was taken into custody at Mumbai International Airport along with his wife Anita, after the authorities had recalled Dubai-bound aircraft as it led to the runway for start, a spokesman for the immigration department said in a statement to the AFP. [1[ads1]9659004] Officials gave no explanation for the couple's travel ban, but the media said they were allowed to leave the airport later.

Goyal is not investigated, but a number of high-profile businessmen have fled India over their alleged involvement in financial crimes, causing a massive public outbreak.

The 69-year-old stepped down from the company's board of directors in March following a debt restructuring pact with lenders as it reeled during a $ 1.2 billion loan.

Anita also went down from the board.

When India's top airline stopped, Jet stopped its business after a lender's consortium refused to pay emergency cash because it failed to find a buyer for a 75 percent stake in April.

The consortium led by State Bank of India, India's largest state-owned bank, took control of Jet in March and pledged to provide $ 218 million in "immediate funding support" as part of a rescue plan. [19659004] But the lenders refused to hand over cash to the alleged airline who has failed to pay employees' salaries since January, forcing hundreds on the streets, as around 20,000 employees face losing their jobs.

Poor investments, competition from several low cost carriers, high oil prices and a weak rupee have led to Jets' current financial problems. Mishandling has also plagued the airline.

Analysts track the start of Jets financial problems for their purchase of Air Sahara for $ 500 million in cash.

Goyal, a travel agency-facing entrepreneur, launched Jet 1992 after the Indian government adopted a number of reforms designed to make the economy more market-driven.

The Mumbai-based operator quickly became known for introducing new measures – Jet was the first Indian airline to offer a frequent flyer program and in flight entertainment.

But it started to be hit by new, well-run budget airlines, including IndiGo, GoAir and SpiceJet, which was founded between 2005 and 2006.

Another low cost airline, Kingfisher Airlines closed in 2012 after Failed to repay loans worth millions of dollars to state-owned banks. His owner Vijay Mallya fled India in 2016 and is currently fighting a extradition case in the London court against his deportation to face financial scams.



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