Jet Airways crisis: PSBs kept public interest in mind, says Arun Jaitley

Finance Minister Arun Jaitley has said the steps taken by the lenders to take control of the ailing Jet Airways by acquiring 51 per cent stake was guided by keeping legitimate self and public interests in mind. Lauding the decision taken by the public sector banks (PSBs) to recover their loans, Jaitley said on the sidelines of a BJP event here on Monday, "The creditors, most of whom are PSBs, have kept legitimate self-interest and public interest in mind. In the banking system, self-interest means a company must survive so that its investments remain and when it prospers, it can get back the monies. 

"The PSBs have also kept public interest in mind because India needs more airlines and more aircraft considering the increase in the flying population," the Finance Minister said. The decision would benefit the fliers, he added.  "If you have less aircraft and less airlines flying, it will lead to tariff hike, which will hurt consumers. I am happy the creditors have kept both these considerations in mind, which reflect their concern for the larger public interest", Jaitley said.

Jet Airways promoter and Chairman Naresh Goyal on Monday stepped down from the board of the airline and ceded majority control to the consortium led by the State Bank of India. 

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Now the lenders, after injecting up to Rs 1,500 crore working capital into the airline and converting their debt into equity, would try to revive Jet Airways and sell it by June.  The airline owes over Rs 8,000 crore to lenders led by the SBI.