Recent resignations may seal Jet’s fate

CEO, Vinay Dube also puts in papers

MUMBAI: The resignation of Jet Airways CEO Vinay Dube, the latest one in a series of such acts, has somewhat sealed the fate of the airline that has been in financial turmoil for a few months now leading to the suspension of its flights driving thousands of its employees into misery.

It was hours ago Jet’s deputy CEO and CFO Amit Agarwal had resigned from the company. Dube, who had joined the airline in August 2017, “has resigned from the services of the company with immediate effect due to personal reasons,” Jet Airways said in a statement. There were reports that the airline’s Chief People Office Rahul Taneja has also resigned.

Kuldeep Sharma, the company secretary and compliance officer, had also resigned from the company earlier. The unsavoury resignation drama has been unravelling at a time when different strategies are being worked out and yet other plans are being discussed for the revival of Jet Airways.

More importantly, this is also a time when the lenders are working with Etihad Airways, which was the only shortlisted bidder to put in a bid.

The airline ceased operations temporarily around mid-April due to an acute liquidity crisis. Most of the airline’s board members have also quit in the last month.

Senior executives from the industry said the management may have taken the decision after it was revealed that Etihad has offered to take just a minority share in Jet Airways.

Etihad Airways revival plan includes equity infusion of Rs1,700 crore. But unfortunately, that seems not to be enough to service Jet’s debt of over Rs8,000 crore and settle arrears of vendors, lessors and employees.

 

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