Chairman of India's troubled Jet Airways resigns

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

Naresh Goyal
In this Wednesday, Nov. 29, 2017, file photo, Jet Airways Chairman Naresh Goyal sits during a press conference to announce the signing of enhanced cooperation agreement with Air France-KLM in Mumbai, India. The chairman of India's private Jet Airways has quit amid mounting financial woes forcing the airline to suspend operations on 14 international routes with more than 80 planes grounded. (AP Photo/Rajanish Kakade)

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

The airline said in a statement that 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 step down as chairman.

Goyal had 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.

Jet Airways recently grounded its five Boeing 737 Max 8 aircraft after a crash in Ethiopia that killed all 157 people on board.

The airline said it was not flying any of the 737 Max planes in its fleet and was "in contact with the manufacturer."


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