Naresh Goyal, the founder and chairman of Jet Airways, stepped down as the chairman of India’s oldest private airline, on the 25th of March. Naresh and his wife, Anita Goyal, both gave up their board memberships.
Vinay Dubey will continue in his current position as the Chief Executive Officer (CEO) and was given the task of bringing Jet Airways out of troubled waters.
Post the resignation of the chairman and his wife, the board released a statement saying, “Resignation by Naresh Goyal, Anita Goyal, and Kevin Knight, as directors of the company, and induction of two nominee directors of lenders. Naresh Goyal will also cease to be the chairman of the Company.”
After Naresh Goyal submitted his resignation, the banks agreed to send in a cash influx of Rs. 1,500 crores to help the airline stay afloat. “Immediate funding support of up to Rs 1,500 crore by lenders by way of issue of appropriate debt instrument against the security of its assets which will restore normalcy to Company’s level of operations,” the statement said regarding the funding.
After issuing his resignation, Goyal sent out a formal letter to all his employees, saying, his resignation is going to pave the way for a new crop of employees to take the leadership forward.
“For me, the 22,000 employees are my own family, as dear to me as Nivaan, Namrata (his children) and my wife (Anita), and no sacrifice is too big for me to safeguard the interest of Jet Airways and the families of 22,000 employees. For the sake of my family of 22,000 employees and their respective families I have today taken the step of stepping down from the board of Jet Airways. I became the chairman on 1st April, 1992, and my family is behind me and with me in this decision and I hope you will support my decision too. I will miss you one and all. Thank you for your brilliant dedication and loyalty down the years. I am proud of you and wish you all a great future ahead with our Jet Airways,” Goyal said in the letter to his employees.
Moments after the Goyals resigned, Jet Airways’ stock price instantly started rising. By jumping over 15 % and standing at a high point for the first time since the 14th of January this year, Jet Airways is slowly getting back on track.
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