After Deputy CEO’s Resignation, Jet Airways CEO Vinay Dube Steps Down With Immediate Effect

A file photo of Jet Airways CEO Vinay Dube. (Reuters)

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New Delhi: Cash-strapped private carrier Jet Airways on Tuesday said its Chief Executive Officer Vinay Dube had resigned with immediate effect.

Dube’s exit follows the resignation of its chief financial officer, Amit Agarwal, earlier in the day.

Both executives tendered their resignation having cited “personal reasons”.

Once India’s largest private airline, Jet halted all flight operations indefinitely around mid-April due to an acute liquidity crisis. Most of the airline’s board members have also quit in the last one month. The airline has a debt of over Rs 10,000 crore.
Jet’s share dived as much as 13% on Tuesday after a media report said lenders led by State Bank of India (SBI) are preparing to begin a fresh search for a majority investor in the airline as Etihad Airways stopped short of offering any comprehensive resolution plan.

In bids closed last week, Etihad Airways offered to infuse enough equity so as to maintain its 24% stake in Jet Airways. This means that the lenders still need to find a majority equity buyer who will infuse the bulk of the equity needed for Jet Airways to fly again.

The lenders had initiated a bidding process to sell stake in the airline to recover some of the debt. The banks are offering up to 75% stake in Jet Airways on a fully diluted basis. The proceeds of the stake sale are expected to help realise at least a portion of the debt the airline owes to its lenders.