According to a confidential report submitted by Indian Intelligence agencies to the Govt., India's largest privately held airline Jet Airways has financial ties with the Indian Mafia as well as Mafia Dons, who have been declared as terrorists by the Indian Govt. The Mafia dons named include Dawood Ibrahim, the don responsible for blowing up Bombay on behalf of some neighbouing countries. Dawood has now been given protection by the military regime in Neighbouring Pakistan, and remains one of the most wanted men in India. Jet is also said to have sourced funds from another mafia don, Chota Shakeel, who is also in hiding.
Due to this report, 9W may end up losing its security clearance, thus grounding the airline which is sometimes called the Singapore Airlines of South Asia. A final decision on jet Airways security clearance will be taken after the Civil Aviation Minister Hussain returns from the BJP's annual sabha (convention) at Goa.
9W is not the only airline accused of having links with the underworld. The first private airline to become succesful, the now defunct East West Airlines, was also accused of being funded by the Mafia. Once the Govt. found out, it throttled the flow of funds to/from the mafia. The owner Mr.Thakiyudeen Wahid, was then hounded by the mafia and later shot dead in a sensational shoot out in the heart of Bombay. East West, which had grown to a 18 737, 6 F27 operation by then folded up soon after that.
While there has always been speculation about the financing of Jet Airways, the latest report clears many of the doubts people had about how a *mere* Travel Agent from Delhi could come with the Hundreds of Crores of Rupees needed to run an airline like Jet Airways, which owns most of the 37 Boeing 737NGs it operates.
The owner of Jet Airways, Mr.Naresh Goyal, has had a career graph that should warm the hearts of most members on this forum. Starting out as a Travel Agent in the days when the state owned Indian Airlines (IC) and Vayudoot ruled the domestic skies, he soon built up a network of 80 odd travel agencies across India (most of them one-room shops).
When India embarked on the open-skies policy and the domestic skies were thrown open to private enterprise, he was one of the first to jump into the fray. He also showed more enterprise than other players like East West and Damania. While all private players without a single exception, went in for the cheaper 737-200's, 9W was the only carrier to choose the newer generation 737-300 and -400 series aircraft, despite the fact that its lease costs were twice that of the -200's. But the newer aircraft did a lot to build 9W's reputation as the best carrier in this part of the world. 9W was also the first private airline to buy its own aircraft, when it started replacing leased 737-400's with owned 737-800's/700's.
But for the last 10 years that Jet Airways has been flying, there have persistent doubts about the exact source of his funds. Naresh Goyal himself has been tight lipped about the whole affair sayng it is *personal* funds. But how a middle-class travel agent could get so much money has always troubled the media people. The ONLY thing known publicly, is that 9W is owned 100% by a company called Tailwinds Intl. which is registered in a British owned tax-haven called Isle-of-Mann.
Whenever 9W needed extra infusions of cash, Mr.Goyal has always managed to pump in the reqd. money. For eg. when the Govt. barred foreign investment in Domestic carriers, Gulf Air and Kuwait Airways which owned 20% each of Jet Airways, sold off their stake to Mr.Goyal, who managed to find the cash to buy of this stake. The purchase of around 10 737-800's was funded partly by a loan guaranteed by the US-Exim bank, but some of the extra cash was brought in by Mr.Goyal.
But Mr.Goyal apart from being an astute businessman, was also a master manager of politicians. Politicians from many political parties were known to be friendly to him which meant that rules were often bent to suit 9W. This explains why the state-owned carriers like AI and IC, and other private players werent allowed to expand their fleets but 9W managed to grow from a 3-aircraft airline to a 42 aircraft operation.
The problem for 9W, is that the current Aviation Minister, Mr.Hussain is known to keep away from *political managers*, so this could mean trouble for the airline and its owners.
While action must be taken against people who do business with the media, its sad to see that this could result in the grounding of what was clearly one of the best airlines in Asia.
Jaysit From , joined Dec 1969, posts, RR:
Reply 1, posted (13 years 6 days 9 hours ago) and read 4507 times:
This could be:
a. harassment of Jet Airways for stealing market share from IC.
b. A natural order of things in India where the government has made it incredibly difficult for private airlines to raise funds, and compete on a level playing field.
c. The fact that someone in the aviation ministry wasn't paid off adequately by Jet, and so is now launching a vendetta of sorts.
d. the truth overblown out of proportion. I am sure Mr. Dawood has investments in all sorts of indian and foreign companies.
Delta777 From United States of America, joined Mar 2000, 658 posts, RR: 0
Reply 5, posted (12 years 12 months 4 days 12 hours ago) and read 4356 times:
JET AIRWAYS CLARIFIES
Jet Airways (India) Pvt. Ltd., and Naresh Goyal, Chairman clarify
for the information of their valued customers
and business associates
1. Certain sections of the media have reproduced a letter dated 12/12/01 purported to be a confidential communication between Intelligence Bureau (Government of India) and the Ministry of Home affairs, containing references to the conduct of business of Jet Airways and Mr. Naresh Goyal.
2. We wish to clarify that neither Jet Airways nor Mr. Naresh Goyal has or have at any time any association, financial or otherwise whatsoever, with any underworld groups or dons, including Dawood Ibrahim or Chhota Shakeel.
3. We would like to categorically state that the entire contribution of equity capital in Jet Airways has been made since inception from legitimate sources and with full approval of statutory authorities, including the Reserve Bank of India and is the subject matter of remittances made through official, authorised banking channels with complete disclosure to all concerned authorities.
4. We reiterate that all funds for acquiring aircrafts and operations of the company have been arranged for by way of borrowings, only from internationally accredited multi-lateral institutions and banks viz. U.S. Exim Bank, International Finance Corporation, Washington, and banks and financial institutions from India and abroad.
5. We confirm and reiterate that we have complied with all the laws of the land applicable to us and are ready to cooperate with any inquiry the Government of India may deem necessary in this regard.
6. We also reiterate that Jet Airways is a professionally managed airline with the highest standards of corporate governance directly providing employment to 6500 persons and networking the needs of 43 destinations across the country.
7. We trust this adequately clarifies the situation and removes all doubts and suspicions that may have arisen.
Jaysit From , joined Dec 1969, posts, RR:
Reply 7, posted (12 years 12 months 4 days 11 hours ago) and read 4321 times:
Can you imagine what air travel in India would be if Jet Airways wasn't around?
IC would still be flying decrepit mosquitoe infested 737s tacked together with scotch tape 8 hours late and serving their passengers stale 10 hr old samosas by hefty bahenjis.
In any case, right now in India all that you have to do to sully a business or engage in libel is to raise the "muslim underworld" connection. Maybe Jet should turn around and claim that IC has connections with saffron thugs of the ruling BJP?VHP/RSS/BS variety.
Indianguy From , joined Dec 1969, posts, RR:
Reply 9, posted (12 years 12 months 3 days 8 hours ago) and read 4260 times:
Mebbe the best way out is for Jet to reveal its true source of funds. That way even if some corrupt babu wanted to play blackmail, the mud wouldnt stick.
After all the whole controversy arose because of the doubts people have surrounding the true ownership pattern of the airline. After all, if he has nothing to hide what does he have to fear?
The newspaper ad that DELTA777(Sean?) quotes means little in the context.
There is no doubt that Jet is truly running a great show. They are truly one of the worlds best run airlines. But that cannot be an excuse to turn a blind eye to mafia involvement, if there is any at all.
The possibility of Jet or any other airline having any mafia connections, especially given the links the mafia has with some Intelligence agencies of terrorist states in the neighbourhood, raises grave security issues for India. Remember the airline flies to many remote destinations in the country, including many airports regarded as highly sensitive. They are one of the biggest operators out of the commercial capital BOM.
If this was the US, the FAA would have grounded the airline long ago!
I feel all such connections must be investigated. And if there is reasonable evidence then ground the airline and arrest the people concerned.