“He used to work for his uncle. Now he runs India's largest domestic airline — and is aiming even higher,” an article in The Guardian had written about Naresh Goyal in 2006.
That year, The Sunday Times had ranked him the sixth richest Asian man in Britain. At 57, Goyal was then living in his sprawling townhouse with views across Regent’s Park in north-west London. He has lived there since 1991.
Thirteen years later, the founder of Jet Airways and his wife Anita Goyal stepped down from the cash-strapped airline’s board. With a debt of more than $1 billion, Jet has been unable to pay to the banks or its pilots.
Son of a jewellery dealer, Naresh Goyal was born in Punjab’s Sangrur. With the death of his father early in his life, Goyal’s family was forced to live through severe financial crisis. Despite that, he managed to complete his education from government schools and colleges.
From working with his uncle, a sales agent for Lebanese International Airlines, in 1967 to establishing his own airline company in 1993, Goyal learnt the nuances of the business over more than two decades.
In 1974, Goyal set up his own travel agency known as Jetair, representing the likes of Cathay Pacific, Air France and Austrian Airlines. When the Indian market opened up in 1991, Goyal took advantage of the opportunity. He leased four aircrafts and began Jet Airways in May 1993, with backing from Kuwait Air and Gulf Air.
Jet Airways (India) Ltd floated an IPO for 1.72 crore shares in 2005. Following the IPO, the Forbes list had Goyal as the 16th richest man in India.
In 2016, investigative journalist Josy Joseph’s book A Feast of Vultures: The Hidden Business of Democracy had raised questions about mafia don Dawood Ibrahim and Goyal. The book had triggered a debate on the rise of Jet and the influence of Dawood on the business since the 90s.
“There is strong suspicion that parts of Goyal’s investments may have accrued through the help of und¬erworld groups, prominently headed by Dawood and Chhota Shakeel,” the book had quoted a single-page note to Sangita Gairola, then joint secretary at the Union ministry of home affairs.
Earlier, in 2013, Goyal had received a notice from the income-tax department seeking details of his foreign bank accounts. Goyal’s company Tail Winds, which was registered in Isle of Man and owned 79% stake in the airline, was accused of tax evasion. Goyal had denied the charges.
The same year, the second-largest airline in the United Arab Emirates, Etihad, bought 24% stake in the company. According to news reports, after Goyal’s exit on Monday, the Abu-Dhabi based airline will take a final call on Jet Airways on March 31.
The cash crunch in the company has forced the airline to suspend operations on at least 14 international routes and more than 50 planes have been grounded due to non-payment of lease rentals.
