Two Jet Airways directors have resigned from the grounded airline, throwing its relaunch plans into further disarray, even as it remains embroiled in legal battles.
In separate stock exchange filings on 19 January, Jet says Gautam Acharya and Rajesh Prasad have stepped down, effective immediately, citing “delays” in the implementation of the airline’s revival plans.
Both men were appointed in July and were part of the airline’s senior management team before it ceased operations in 2019. Acharya was a vice-president at the airline, while Prasad was the airline’s strategy chief in 2018.
“The reason for resignation of is that the director was appointed for limited purpose of ensuring necessary compliances and filings for implementation of the resolution plan, and since the implementation… is delayed, he has tendered resignation,” the filings state.
Furthermore, the airline has yet to name a new chief executive, after previous CEO-designate Sanjiv Kapoor abruptly resigned in May 2023. At the time, Jet parent Jalan-Kalrock Consortium said a new leader would be announced, but there have been no updates since.
The management void also comes as the consortium, which became the new owners of the collapsed airline in 2021, faces fresh legal and financial setbacks. Jet had previously aimed to relaunch this year.
On 18 January, the Indian supreme court ordered the consortium to pay INR1.5 billion ($18 million) as a bank guarantee for its resolution plan. The group has until 31 January to do so, or it will face “consequences of law”, according to local media reports, citing court proceedings.
The consortium – comprising tycoon Murari Lal Jalan and Kalrock Capital – added Rs1 billion ($12 million) in equity to the Indian carrier in September 2023, bringing its total financial commitment to Rs3.5 billion, in line with the airline’s revival plans.
The supreme court had also looked into various legal challenges to the consortium’s ownership of the airline, including those from its creditors and from its former employees who have alleged unpaid gratuities.
Jet Airways did not publicly respond to the court’s decisions. FlightGlobal has contacted the airline for comment on its leadership changes.
Jet was the country’s largest private carrier when it went under in 2019. A resolution plan from the consortium received court approval in June 2021, and the airline clinched its its air operator certificate from Indian regulators in May 2022.
