In yet another major setback, Jet Airways CEO Vinay Dube has resigned from the cash-strapped airline with immediate effect. Vinay Dube cited personal reasons for his departure from Jet Airways, which is in the midst of desperate attempts for revival, the company said in a regulatory filing. Earlier yesterday, Jet Airways deputy chief executive and chief financial officer (CFO) Amit Agarwal had also resigned due to personal reasons, with immediate effect. Jet Airways lenders are soliciting bids for investment into the airline and revival of the carrier formerly controlled by Naresh Goyal. The lenders are offering 31.2 to 75 per cent stake in the ailing company on a fully diluted basis.
Jet Airways Chief People Officer (CPO) Rahul Tarneja has also submitted his resignation, TV news channels reported citing sources. It implies exit of three high-profile executives in under 24 hours. Jet Airways, once the biggest private carrier in the country, owes huge sums to its lessors, pilots, fuel suppliers and other parties. The employees union of the airline had recently moved Supreme Court recently asking it to direct the State Bank of India (SBI) to infuse funds in it for meeting the emergency needs and disbursing salaries to them.
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The cash-starved airline had temporarily suspended its ground operations in middle of April due to severe liquidity crisis. Following this, hundreds of employees of the airline were left stranded amid uncertainty around the revival of the beleaguered airline. The consortium of lenders led by the SBI is currently in the process to raise funds to recover dues of over Rs 8,400 crore. The shares of Jet Airways closed the day at Rs 128.90, down 10.20 points, or 7.33 per cent on NSE today.