CEO Vinay Dube exits | Shares plunge | Etihad trying to rope in Hinduja to save Jet
Chief Executive Officer Vinay Dube also resigned, a day after grounded carrier Jet Airways’ Deputy Chief Executive and CFO Amit Agarwal stepped down citing personal reasons.
“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.
- Vinay Dube who had joined Jet Airways in 2017 had struggled to keep the airline afloat amid rising losses.
- Dube took the decision to suspend the airline’s operations on 17 April citing no liquidity to fund day to day operations.
- Dube’s exit continues the exodus which has seen top executives including founder Naresh Goyal, Director Nasim Zaidi, CFO Amit Agarwal.
- The SBI-led lender consortium grapples to bring in fresh investors with the deadline expired without any satisfactory bids.
- CEO Vinay Dube’s resignation follows the exits of CFO Amit Agarwal and CHRO Rahul Taneja within a span of 24 hours, with no revival deal in sight.
Shares tumbled with Executive Exodus
The mass exit of senior managing executives fuelled market scepticism over chances of the debt-ridden carrier’s revival. Jet Airways stock price has shed as much as 6.05% of its value since.
Lenders put hopes in UK’s Hinduja Group
The second biggest Jet stakeholder Etihad Airways and other lenders approached UK’s Hinduja Group for a stake sale.
As per Economic Times, Hinduja Group hasn’t given any clear indications of its commitment to invest in Jet but the interest is clear after Etihad approached the head of the group GP Hinduja. The senior Hinduja has reportedly introduced the Etihad personnel to his younger brother Ashok Hinduja who leads the India business.