Economy

Jet Airways founder Naresh Goyal, wife Anita step down from board

Jet Airways founder Naresh Goyal, wife Anita step down from board

A consortium of banks, led by State Bank of India, had asked several of the airline directors, including Goyal and his wife Anita Goyal to step down from the board.

Goyal who set up the company with his wife in 1993, would also cease to be the chairman, the filing said. Following this, the lenders will start looking for a new buyer in the coming weeks.

Saddled with more than $1 billion of debt, Jet is struggling to stay afloat.

SBI chairman Rajnish Kumar had last week said that the lenders would make every effort to keep Jet Airways flying and that all stakeholders were in the unanimous view that the airline is a good aviation property.

Meanwhile, Etihad may remain on Jet's board for now, but its 24 per cent equity stake in the airline is expected to be diluted over the course of time. The reports of Goyal's departure led to a rally in Jet's shares of more than 12 percent.

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The current chief executive officer (CEO) Vinay Dube is anticipated to remain on board and bring Jet out of the current crisis.

Etihad Airways has two nominees on Jet Airways board of directors, Kevin Knight and Robin Kamark.

The decision paves the way for lenders, led by the State Bank of India (SBI), to invoke some of Goyal's shareholding and rescue the airline on an immediate basis.

With Goyal's exit, lenders of Jet Airways are likely to pick up a substantial stake in the debt-laden airline till a new promoter is roped in.

Jet Airways has posted losses of over Rs 1,000 crore for three consecutive quarters since March 2018.