The founder and promoter of Indian budget carrier Jet Airways has pledged to hand over his entire sharholding in the company – estimated to be 51% of shares – to a state-owned bank.
UK-based Naresh Goyal has pledged the shares, valued at more than £260 million to Punjab National Bank.
The reason behind the pledge has not been disclosed.
Abu Dhabi state carrier Etihad owns 24% of Jet while the remaining shares are publicly held.
The airline is reportedly saddled with debts of nearly a billion pounds. Some of those debts are believed held by Punjab National Bank.
Neither the airline nor PNB have commented.
The news comes despite the company outperforming its rivals, troubles at main competitor SpiceJet and tumbling oil prices which account for nearly half of operational expenses of Indian domestic airlines.