Jet Airways' deputy CEO and CFO Amit Agarwal quits

Updated: May 14, 2019, 11:26 IST | mid-day online desk

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

Jet Airways' deputy CEO and CFO Amit Agarwal quits

Deputy chief executive and chief financial officer (CFO) Amit Agarwal of the grounded carrier Jet Airways' has resigned effective from May 13, the airline said on Tuesday.

Jet Airways said in a regulatory filing said, "We wish to inform that Amit Agarwal, the deputy chief executive officer and CFO of the company, has resigned from service due to personal reasons, with effect from May 13."

The airline seized operations temporarily around mid-April due to an acute liquidity crisis. Most of the airline's board members have also quit in the last month. On April 17, Jet Airways in an official announcement said, "Late last night, Jet Airways was informed by the State Bank of India (SBI), on behalf of the consortium of Indian Lenders, that they are unable to consider its request for critical interim funding.

Since no emergency funding from the lenders or any other source is forthcoming, the airline will not be able to pay for fuel or other critical services to keep the operations going. Consequently, with immediate effect, Jet Airways is compelled to cancel all its international and domestic flights. The last flight will operate today.

This decision has been taken after a painstaking evaluation of all alternatives that were made available to the Company and after receiving guidance and advice on the same from its Board of Directors. Jet Airways has informed the DGCA, and the Ministries of Civil Aviation and Finance and other relevant government institutions, of this course of action.

Several top executives and board members have quit the airline. Former Chief Election Commissioner Nasim Zaidi resigned from his position as Non-Executive and Non-Independent Director on the airline's board citing personal reasons and time constraints. Independent Director Rajshree Pathy and top executive Gaurang Shetty have also quit the board.

Jet Airways Chairman Naresh Goyal and his wife Anita, who held 51 per cent of the equity, resigned from the board on March 25 and transferred control to the lenders. Jet has been suffering bruising competition from low-cost airlines, fluctuating crude prices and a weak rupee.

Over the last several weeks and months, the company has tried every means possible to seek both interim and long-term funding. Unfortunately, despite its very best efforts, the airline has been left with no other choice today but to go ahead with a temporary suspension of flight operations.

This has been a very difficult decision but without interim funding, the airline is simply unable to conduct flight operations in a manner that delivers to the very reasonable expectations of its guests, employees, partners and service providers.

After 25 years of sharing the Joy of Flying with Indian and international guests, Jet Airways has been forced to take this extreme measure as prolonged and sustained efforts with lenders and authorities did not yield the desired results."

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Edited by mid-day online desk with inputs from ANI

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