Jet Airways founder Naresh Goyal steps down as chairman of board

New Delhi, News Nation Bureau | Updated : 28 February 2019, 07:42 PM
Jet Airways founder Naresh Goyal has step down as chairman of the board
Jet Airways founder Naresh Goyal has step down as chairman of the board

Jet Airways founder Naresh Goyal has agreed to step down as chairman of the board of directors, as per some sources. 

On February, as per a report by Business Standard which says that the cash-strapped domestic carrier, has reportedly accepted the much-needed bailout package by the Etihad Airways. Under the bailout package, the two airlines are likely to sign a memorandum of agreement in coming days. Though several media outlets are reporting about the deal, no official confirmation has been made by either Jet or Etihad Airways.

Interestingly, just a day before on Thursday, Jet Airways CEO Vinay Dube had told its employees that the situation of the crisis-ridden airline might get tougher and asked them to be patient. In an email to the employees, Dube said, "It might get tougher before it gets better, and our ascendancy will be gradual, but collectively, with your unstinted support and commitment, we will come out of this a stronger airline."

Recently, the company also cancelled 15 of its flights following grounding of six Boeing 737 planes due to non-payment of lease rentals. Dube said that the company's chairman, board of directors and the management team are working hard on a balance sheet transaction that will help in eliminating its "current challenges".

Also read | India’s GDP growth rate slips to 6.6 per cent in third quarter

Jet Airways' operations are likely to be hit from next month with its pilots union NAG deciding to adhere to the duty roster from March 1 over non-payment of salaries, union sources said Monday. Members of the National Aviator's Guild (NAG) will not fly over and above roster hours from March 1, they said. The Jet Airways management was not immediately available for a comment on the development.

In a communique sent to pilots, NAG said 25 per cent of November salary along with 12.5 per cent of December salary will be processed on February 26. "Since the management was unable to give any further payout commitment, a flight safety period along with black band protest will begin from March 1. A detailed mail will be sent soon by NAG," the communique said.

Earlier in the day, Jet Airways, a listed entity, told the stock exchanges it is working out a "mutually acceptable" arrangement to ensure it becomes current on salary overdues. The airline has been delaying salaries to its pilots along with engineers and senior management since last August.

First Published: Thursday, February 28, 2019 07:23 PM

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