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Jet Airways may cede reins to Etihad, puts Tatas' proposal on back burner

Naresh Goyal run Jet Airways is said to have agreed to give up its controlling stake, paving the way for Etihad Airways to increase its holding in the troubled airline up to 49% — the maximum permissible limit for a foreign entity. At present, Etihad owns 24% of Jet Airways, while Naresh Goyal holds 51%. According to sources, founder and chairman Goyal, who has been reluctant to give up control, is now preferring Etihad’s offer to the ones being discussed with Tata Sons and other private equity funds. Goyal’s holding is likely to drop to around 26%, said a source, but he would continue to remain chairman of the airline. The deal is expected to be concluded in 4-6 weeks, he added. Jet Airways is struggling to continue operations and has defaulted on salary payments and is renegotiating payments with lessors <br/>