Flying from Rs 300 job to Jet Airways - The story of Naresh Goyal who came to the floor from Arsh

On May 5, 1993, a Jet Airways Boeing aircraft led by Naresh Goyal and his wife Anita Goyal lifted its nose from the runway, looked up at the sky, and then got lost in it to talk to the clouds. Yes, this is the date when Jet Airways started its commercial operation. 

Jet Airways founder Naresh Goyal, who is embroiled in a bank fraud case, is pleading 'with folded hands' before the judge in court today, they said, 'I have lost every hope of life' and would rather die in jail than live in my present situation. Now the question is, how did the owner of an airline reach this situation? So, there is a long story behind it which is also very interesting. How did a man with a salary of Rs 300 a month become the owner of an airline worth crores of rupees and then fall to the floor in one fell swoop?  

Started job at Rs 300 a month 

Born in 1949 to a jeweler in Sangrur, Punjab, two years after the country's independence, Naresh Goyal had a very difficult childhood. The shadow of the father had risen in childhood and at the age of just 11, the roof was also snatched from his head, because the family was caught in such a difficult financial crisis that the house was auctioned. In 1967, when Naresh Goyal was 17-18 years old and was graduating from Bikram College of Commerce in Patiala, then he had to start a job to meet the responsibilities and financial needs of the house. He started a job in his maternal uncle Seth Charan Das Ram Lal's travel agency named East West for Rs 300 a month. 

Learned the nuances of the travel business while working 

While working in a travel agency, Naresh Goyal was associated with several foreign airlines from 1967 to 1974. During this time, he understood the nuances of the travel business. He also made a lot of foreign trips in connection with business. In 1969, Iraqi Airways appointed Naresh Goyal as its public relations manager. From 1971 to 1974, ALIA worked as the Regional Manager of Royal Jordanian Airlines. Naresh Goyal also worked in the Indian Middle East Airlines (MEA) office. Here he understood many important aspects of the travel business including ticketing, reservation, and sales.

The business started demanding a loan of Rs 15000 

Understanding the nuances of the travel business, he made up his mind to start his own business and then in the year 1974, he started his own travel agency named Jet Air after taking about 15,000 rupees from his mother. Jet Air Agency represented airlines like Air France, Austrian Airlines, and Cathay Pacific. Goyal's move proved to be a milestone and his business took off. Then, as the years changed and the decade changed, their business grew. In the early 90s, the country's economy was in a difficult phase and the government led by the then Prime Minister P.V. Narasimha Rao gave the green signal to the Open Sky Policy. Naresh Goyal took this opportunity hand-in-hand and started air taxi for domestic operations. 

Jet Airways started in 1993 

There was no looking back for Naresh Goyal, who had four aircraft in his fleet within two years of the launch of the air taxi. Then on May 5, 1993, a Jet Airways Boeing aircraft lifted its nose from the runway, looked at the sky, and then got lost in it to talk to the clouds. Yes, this is the date when Jet Airways started its commercial operation. Jet Airways has expanded rapidly in the domestic market and in 2002, it surpassed even Indian Airlines in terms of share in the Indian aviation market. 

Things started to change after buying Air Sahara 

In 2005, the airline entered the capital market, and with a 20 percent stake, Naresh Goyal's net worth crossed Rs 8,000 crore. The company also presented its IPO and after its arrival, Naresh Goyal joined the richest in the country, he was ranked number 16 by Forbs. To expand his business, he bought Air Sahara Airline for Rs 1,450 crore in 2006, in which Jet Airways got 27 aircraft and some international routes with a 12 percent stake. But this deal was considered to be the beginning of a bad day for Jet Airways.  

Budget airlines hit the stage 

Naresh Goyal renamed Air Sahara as 'Jet Lite' and operated it as a full-service airline on a cheap ticket. By this time, the era of budget airlines had begun and changed the local aviation landscape forever. Airlines like IndiGo and SpiceJet shook the entire industry with their low-priced, no-frills model.  In this race, a lot of money was spent on Jet Airways and Jetline. Experts believe that from here the company went into financial crisis. After 5-6 years, there was a big change in the aviation sector, when IndiGo overtook Jet Airways. At the same time, the falling value of the rupee and rising oil prices made the game worse.

Debt trap, operation closed in 2019 

Airlines like Kingfisher collapsed, and Jet Airways also ran into trouble. During this time Jet also fired many employees (1900). However, he was reinstated after government intervention. In 2013, UAE's Etihad bought a 24 percent stake in Jet. At the same time, the debt of the airlines continued to increase. As of November 2018, Jet Airways had a debt of around Rs 8,500 crore to 25 other banks. In January 2019, the airline delayed repaying loans to banks, causing its rating to plummet. In the bad phase, UAE's Etihad ended the last hope of Naresh Goyal, and Jet Airways, which touched the heights of the sky in 25 years, collapsed and he had to stop the operation.

Goyal implicated in Rs 538 crore bank fraud  

Regarding the moment, let us know that Naresh Goyal is accused in the Rs 538 crore Canara Bank fraud case. According to court records, Goel was taken into custody in this case on 1 September 2022 last year. He is currently in judicial custody in Mumbai's Arthur Road jail. It is noteworthy that last year on November 23, 2022, Canara Bank officials had filed charges of fraud, criminal conspiracy, and breach of trust against Jet Airways' Naresh Goyal, Anita Goyal, Gaurang Anand Shetty, and unknown people, due to which Canara Bank had to pay Rs 538.62 crore.