Naresh Goyal-owned Jet Airways? recent changes in the management are the first steps at aligning the airline?s
operations with Abu Dhabi?s Etihad Airways, which has agreed to buy a 24% stake in the Indian airline.
People in the know of the development told FE that recent changes, which included a new chief executive officer, increased role for Naresh Goyal?s wife Anita Goyal and the exit of Jet loyalist KG Vishwanath, vice-president commercial strategy and investor relations, were okayed by the Jet Airways? board after consultation with counterparts from Etihad.
?With the coming of Etihad, Jet wants to head in a different direction in terms of its commercial strategy which will now have greater focus towards more premium interior product and greater international coonnectivity,? one of the persons in the know of development said.
?Appointment for top management at Jet Airways will be done in consultation of both airlines and there will be
no unilateral appointments made,? the official added.
Spokesperson of both Jet and Etihad could not be reached for comments despite repeated attempts.
Jet Airways, which is currently awaiting regulatory clearances for stake sale to Abu Dhabi?s Etihad Airways, recently saw some top level changes in its management.
While, the airline?s vice-president for commercial strategy and investor relations, KG Vishwanath, has resigned from the airline, Jet chairman Naresh Goyal?s wife Anita Goyal, who headed network planning and revenue management, has been redesignated as an adviser to the CEO. Vishwanath is the second senior executive to exit the airline this year, after airlines? former chief executive officer Nikos Kardass ? who quit in June ? was replaced by former Air New Zealand CEO Gary Toomey.
?Etihad will be bringing in their own people and will play a larger role in the international operations of Jet Airways though they will leave the Indian airline to manage its domestic operations,? said a source close to the company.
The profile headed by Vishwanath may cease to exist in future and could be clubbed with a different designation, said the source.
Vishwanath held a dual role, which included management accounting, budgeting, financial forecasting, developing and monitoring strategies relating to the commercial aspects of the business. Additionally, he was also responsible for the investor relations function in the airline.
Etihad had agreed to pay $379 million for a 24% stake in Jet in April. It also invested an additional $150 million in Jet?s frequent flyer programme and spent $70 million to buy Jet?s three pairs of Heathrow slots through a sale and leaseback agreement.
?Whenever two companies merge it is natural for the dominant partner to bring in changes to the existing structure of the company. In this case, Etihad Airlines has forced a few changes at Jet Airways and those who are not happy with the changes are leaving the company,? said another source. ?More such changes could be expected in future,? the source added.