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Tue, Oct 22, 2019 | Last Updated 2:57 pm IST

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Why Jet Airways CEO resigned immediately?

Why Jet Airways CEO resigned immediately?
Why Jet Airways CEO resigned immediately?

Reportedly hours after the CFO of Jet Airways resigned from the company, Chief Executive Officer Vinay Dube too has resigned from the company with immediate effect. Meanwhile, according to filings with stock exchanges, Dube has resigned from the services of the company due to personal reasons. Furthermore, this is the third major exit from the company after CFO and deputy CEO Amit Agarwal resigned with effect from May 13, 2019, due to personal reasons.

Reportedly a few days prior to this, another top executive, Gaurang Shetty, considered close to founder Naresh Goyal, resigned from the board of directors. Meanwhile cash-strapped airlines Jet Airways suspended operations on April 17 after lenders failed to infuse emergency funds to keep the airline afloat. Apparently with salaries pending for months, hundreds of employees, including pilots and ground staff, left the company to join other airlines.

Moreover after lenders took over the company, search for new investors has been on. Jet Airways owes lenders, led by SBI, over Rs 8,400 crore. Hence Private equity firm TPG Capital, Indigo Partners, National Investment and Infrastructure Fund (NIIF) and Etihad Airways had been shortlisted to submit their bids after they gave their EoIs. Recently Etihad put in its offer with several conditions. Further apart from offering to infuse only Rs 1,700 crore, Etihad wants lenders to find another majority buyer and has also asked the banks for a one-time settlement with operational creditors.

Why Jet Airways CEO resigned immediately?
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