Jet Airways slumps after reports of Etihad's non-binding offer

Jet Airways,Jet Airways CEO,Vinay Dube

Jet Airways CEO Vinay Dube’s exit comes shortly after the resignation of its Chief Financial Officer Amit Agarwal

The carrier had not been able to find a local partner and lenders may need to take about 80 per cent haircut on their outstanding loans to Jet Airways, the report said, citing banking sources.

Jet grounded operations on April 17, running out of cash to stay afloat and failing to raise additional funds. Earlier in the day it had similarly announced Agarwal's resignation.

Separately, the Economic Times newspaper reported on Tuesday that Jet's Chief People Officer Rahul Taneja had also resigned.

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. "Few unsolicited offers have also been received which the lenders may deliberate upon subsequently", SBI Capital Markets said.

Abu Dhabi-based Etihad Airways submitted its sealed bid to acquire a minority stake in Jet Airways with a lot of riders that involved finding more investors, leaving little hope for the airline's survival.

"It was long expected that Jet will eventually shut down and I think now that's coming to fruition". They both had resigned from the Jet Airways board on March 25, transferring the control to the lenders led by the State Bank of India.

"Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that Mr Vinay Dube, Chief Executive Officer of the Company, vide his letter dated 14 May 2019, has resigned from the services of the Company with immediate effect due to personal reasons", the company said in a regulatory filing on Tuesday. Dube had joined Jet in August 2017, after working in global airlines like Delta and American Airlines.

During the period Agarwal officiated the position as acting CEO.

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