Naresh Goyal, a former ticketing agent who went on to build one of India’s biggest airlines, has stepped down as chairman of cash-strapped Jet Airways India Ltd. after caving in to pressure from creditors.
Jet’s board approved the resignation of Goyal, 69, and his wife Anita, the second biggest full-service airline in India said in a filing on Monday. Banks, which will get 114 million new shares in the company, will provide the carrier with immediate funding of as much as Rs 15 billion in debt.
The resignation marks the end of an era as Goyal, once ranked as one of India’s 100 richest people, who is widely seen as a pioneer in India’s fast-growing aviation industry. The move comes after his flagship company, partly owned by Abu Dhabi’s Etihad Airways PJSC, fell victim to the emergence of budget carriers offering base fares as low as 2 cents.
