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. According to filings with stock exchanges, Dube has resigned from the services of the company due to personal reasons.
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. A few days prior to this, another top executive, Gaurang Shetty, considered close to founder Naresh Goyal, resigned from the board of directors.
Cash-strapped airlines Jet Airways suspended operations on April 17 after lenders failed to infuse emergency funds to keep the airline afloat. With salaries pending for months, hundreds of employees, including pilots and ground staff, left the company to join other airlines.
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. 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.
However, Etihad put in its offer with several conditions. 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.
The government too decided to re-allocate Jet Airways' slots and traffic rights to local carriers. State-run Airports Authority of India (AAI) was ordered to stop billing the carrier and directed concerned officials to take over the space rented out to the suspended airline.