Jet Airways CEO Vinay Dube resigns citing 'personal reasons', third top executive to quit ailing airline in 24 hours

In a major blow to the ongoing efforts to revive cash-strapped Jet Airways, its Chief Executive Officer Vinay Dube resigned on Tuesday evening with immediate effect, according to a filing in the exchanges.

This is the third top-level exit in the past 24 hours. Earlier on Tuesday, Amit Agarwal, Chief Financial Officer (CFO) and deputy CEO and, Rahul Taneja, Chief People Officer (CPO) resigned from the beleaguered airline.

“We wish to inform you that 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,” Jet Airways said in a regulatory filing.

Sources: @jetairways CPO Rahul Taneja puts in resignation papers pic.twitter.com/95spr2R5UE

— CNBC-TV18 (@CNBCTV18Live) May 14, 2019

Shares of Jet Airways Tuesday plunged over 7 percent, its second day of decline, after Agarwal resigned on Tuesday morning.

Dube joined Jet Airways as CEO of Jet Airways in August 2017. He joined Jet Airways in August 2017. He holds a Master’s degree in Operations Research from the University of North Carolina. Dube is an aviation specialist with close to three decades of experience in aviation. Prior to Jet Airways, he was the senior vice president-Asia Pacific for Delta Airlines. He has worked in varied roles at Sabre Airline Solutions, and American Airlines in the USA, Europe, and Asia.

Jet Airways shares tank

The scrip tanked 7.42 percent to close at Rs 129.10 on the BSE on Tuesday. During the day, it plunged 12.44 percent to Rs 122.10.

On the NSE, shares plummeted 7.33 percent to close at Rs 128.90.

In terms of volume, 22.14 lakh shares were traded on the BSE during the day, while over one crore shares were traded on the NSE.

Shares of Jet Airways had plummeted over 8 percent on Monday amid continued uncertainty about bidders.

The airline ceased operations temporarily on 17 April due to an acute liquidity crisis. Once the biggest private carrier in the country, it owes vast sums to its lessors, pilots, fuel suppliers, and other parties. It stopped all flights from April 17 after its lenders refused to extend more funds to keep the carrier flying.

Most of the airline’s board members have also quit in last one month.

The cash-strapped airline was founded by Naresh Goyal over 25 years ago.

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

Meanwhile, the embattled airline received two unsolicited bids raising hopes for the revival of the debt-laden carrier.

Middle Eastern carrier Etihad Airways submitted a bid for a stake in India’s Jet Airways, the unit of State Bank of India (SBI) overseeing the sale of the stricken airline said on Friday.

SBI had invited binding bids for a stake in the airline, which is saddled with roughly $1.2 billion in bank debt.

Etihad, which already holds a minority stake in Jet Airways, is interested in re-investing in the airline, subject to certain conditions, a spokesman for the Middle Eastern carrier said earlier on Friday.

However, he added that Etihad “cannot be expected to be the sole investor” and “additional suitable investors would need to provide the majority of Jet Airways’ required recapitalisation.”

Etihad Airways gave no indication whether it was working with any other investors that might take a majority stake in Jet.