Jet Airways sees management exodus as rescue hopes dim

Andrew Cummings
May 15, 2019

Earlier in the day it had similarly announced Agarwal's resignation.

Jet Airways lenders made a decision to look out for bidders for the cash-strapped airline after existing shareholder Etihad Airways refused to raise its stake beyond the current 24%.

"We wish to inform you that Mr. Amit Agarwal, Deputy Chief Executive Officer and Chief Financial Officer of the Company has resigned from the services of the Company due to personal reasons, with effect from 13 May 2019", Jet Airways said in a statement to the stock exchanges.

Dube joined Jet Airways as CEO of Jet Airways in August 2017. Agarwal's resignation was effective May 13, the company said.

Late on Tuesday, the company said that Kuldeep Sharma, who was its company secretary and compliance head, has also stepped down with immediate effect.

Grounded Jet Airways continues to lose its senior executives dashing hopes of the airline's revival. Reuters was unable to confirm the report.

Abu Dhabi-based Etihad Airways submitted its sealed bid to acquire a minority stake in Jet Airways with a lot of conditions that involved finding more investors.

Meanwhile, Jet is being probed by the Enforcement Directorate (ED) on its deal to sell 50.1% of its loyalty rewards programme Jet Privilege Pvt Ltd (JPPL) to Etihad.

"Etihad re-emphasises that it can not be expected to be the sole investor, and that, amongst other requirements, additional suitable investors would need to provide the majority of Jet's required recapitalisation", Etihad said in a statement on May 10, which was the last date for submission of bids.

"This had to happen", said analyst Ronil Dalal of Ambit Capital.

"It was long expected that Jet will eventually shut down and I think now that's coming to fruition".

Jet and SBI were not immediately available for comments.

Jet Airways is now left with virtually no top management and a bare bones board. Agarwal had been acting as CEO during that time. Shares of the carrier, which have tumbled nearly 70 per cent over the past year, were down 5 per cent at Rs 144.3, as of 0445 GMT.

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