Guilty and embarrassed at investors’ losses: Jet’s Goyal

Jet Airways Chairman Naresh Goyal has apologised to shareholders for the losses they suffered because of the sharp erosion in the airline’s share price.

Shares of India’s second-largest domestic airline hit a 52-week low of ~286.95 in intra-day trade on Thursday— it closed at ~301.7. On a year-to-date basis, the stock has tanked 63.7 per cent, the highest fall among aviation stocks. The IndiGo and SpiceJet stocks, meanwhile, were down 11.7 and 38.6 per cent, respectively, during the same period.

“A lot of shareholders have lost money. I felt guilty and embarrassed ,” Go ya lt old shareholders after listing measures for growth and corporate governance at the annual general meeting here on Thursday.

Jet launched an I PO in 2005 with an offer price of ~1,100 and the stock has been trading below the offer price for the past 12 years.

Go ya l—facing tough questions from employees for en forcing salary cuts—broke away from his prepared speech at the A GM to list steps to improve the situation at hand. He said a new committee would be setup to improve public perception and negative publicity. He said the board was being strengthened to correct a perception that the airline was a family run enterprise. He also said former bureaucrat and board member Na sim Zai di would chair the firm’ s executive committee.

Shareholders, though, were not impressed. Some questioned the airline’ s plans to return to profit. Some asked how the staff would have morale if the boss es said funds would run out in 60 days. The airline has denied its top executive made such a statement.

Responding to shareholders’ questions on pay cuts, Chief Executive Officer Vi nay Du be said the management was looking at various options and restructuring pay was one of them .“We are in dialogue with employees and they are supportive of our plans ,” Dube said.

Go ya ls aid all board members had decided to take a cut in sitting fees and remuneration, while he has decided not to take any sitting fee. The chairman said the ~ 6.36-billion lossin the last financial year was because of an increase in cost beyond the control of the company and it was made worse by the massive capacity addition by rivals and irrational pricing in the market.

The airline, hesaid, would continue to strengthen its relations with E ti had Airways, which owns 24 percent in Jet, to connect new destinations in West Asia and Africa. The partnerships with Air France-KL M and Delta that allowed Jet to provide greater connectivity to Europe and the US would also be strengthened. It is also looking at cooperation from Air India in areas of engineering and flight operations.