Chairman of India's ailing Jet Airways resigns

Posted on Monday, March 25th, 2019 By The Associated Press

NEW DELHI (AP) — The chairman of India's private Jet Airways has quit amid mounting financial woes which have forced it to suspend 14 international routes and ground more than 80 planes.

A statement by the airline said its board on Monday accepted the resignations of Chairman Naresh Goyal, his wife and a nominee of Gulf carrier Etihad Airways from the board. It said Goyal will also cease to be chairman.

Goyal has been trying to obtain new funding from Etihad Airways, which holds a 24 percent stake in the airline, which was founded 27 years ago.

The statement said the airline will receive 15 billion rupees ($217 million) in immediate funding under a recovery plan formulated by its creditors, led by government-owned State Bank of India.

It also said the board approved the setting up of an interim management committee to oversee daily operations and cash flow of the company.

The lenders will complete in the June-August quarter the bidding process for the issuing and sale of shares to new investors.

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