Jet Airways Shares Fall After CEO, Other Top Executives Resign

NDTV Profit Team

15 May 2019, 12:49 PM IST

Jet Airways news: Jet Airways shares have fallen more than 46% since grounding of the carrier

Jet Airways shares fell nearly 7 per cent on Wednesday, a day after its chief executive officer Vinay Dube resigned. Jet Airways' share price opened lower at Rs 121.10 apiece on the National Stock Exchange (NSE), and declined to Rs 120.00 apiece at the day's weakest point, compared to the previous close of Rs 128.90. Till Tuesday, shares in the debt-laden Jet Airways had dropped 46.4 per cent since the grounding of the cash-starved airline last month. (Also read: Jet Airways CEO, 3 others from top management quit in less than 24 hours)

On the Bombay Stock Exchange, the Jet Airways share price opened at Rs 121.10 apiece on Wednesday, and dived 6.86 per cent to an intraday low of Rs 120.25, from their previous close of Rs 129.10.

In separate regulatory filing on Tuesday, Jet Airways said its CEO Vinay Dube, deputy CEO and chief financial officer Amit Agarwal, and company secretary and compliance officer Kuldeep Sharma had resigned. Mr Dube and Mr Agarwal resigned “due to personal reasons”, the airline said.

Jet Airways' chief people officer, Rahul Taneja, also quit, sources told NDTV.

The carrier had earlier this month accepted the resignation of its whole-time director Gaurang Shetty.

The exits come at a time the airline is struggling with a debt of more than $1.2 billion, and owes money to lessors, suppliers, pilots and oil companies. Lenders of the now-grounded Jet Airways have taken a controlling stake in the airline, and are currently in the process of selling a stake to recover their dues.

SBI Capital Markets, a unit of SBI - which leads the group of Jet Airways' lenders, said last week that it received a solicited bid from Etihad Airways and three unsolicited bids for the airline. (Also read: Etihad, three others bid for Jet Airways)

The airline temporarily suspended its flight operations on April 17. Till Tuesday, Jet Airways shares had declined 53.54 per cent so far in calendar year 2019.

At 11:34 am, Jet Airways shares traded 5.15 per cent lower at Rs 122.45 apiece on the BSE, underperforming the benchmark Sensex index which was up 0.63 per cent.