Jet Airways vice president K G Vishwanath quits

Etihad decided to pick up 24% in Jet Airways for about Rs 2060 crore in April 2013

Jet Airways is witnessing changes in its top  management as it awaits regulatory approval for 24% stake sale to Abu Dhabi's Etihad Airways.

 

 Jet Airways vice president (commercial strategy and investor relations) K G Vishwanath has resigned from the airline. Vishwanath is the second senior executive after chief executive officer Nikos Kardassis to leave the airline  Air New Zealand's former CEO Gary Toomey has replaced Kardassis who quit in June.

 

Vishwanath, known as ''Vishy''  amongst colleagues, joined the airline as a management trainee in 1998.  Vishwanath handled various strategic projects including fleet and route selection, aircraft financing, capital raising, international operations launch.  He was associated very closely with the Chairman during the Initial Public Offering (IPO) exercise in 2005 and has been handling the investor relations portfolio since then, says the airline website.

 

In other administrative changes, Anita Goyal, Jet Airways promoter Naresh Goyal's wife, who heads network planning and revenue management has been redesignated as an advisor to the CEO.

Abdulrahman Albusaidy, an Omani national,  who holds the post  of group executive officer and is in charge of Gulf market has been redesignated as chief strategic planning officer and has been given wider powers.

 

Jet Airways and Etihad did not respond to an email query on the issue. "All these changes are being driven by Etihad,'' a source said and added there could be few more resignations from senior management as the Gulf airline completes acquisition of its  stake.

 

Already,  a  team of Etihad Airways executives are in Mumbai  and  working with Jet  management. "The executives are here on secondment and are participating in strategy meetings in Jet Airways,'' a source said.

 

Etihad decided to pick up 24% in Jet Airways for about Rs 2060 crore in April and the deal received Foreign Investment Promotion Board approval in July after the two airlines decided to tweak clauses related to control and ownership in the agreements.  The deal is awaiting clearance from Cabinet Committee of Economic Affairs.  Aviation.

 Some corporate governance and aviation experts believe Etihad will hold influence and control over the Indian carrier despite modifications to the  shareholder and commercial pacts signed between them.

 

 Jet Airways board too will undergo a transition. It  will have 12 members — four directors representing it, two from Etihad and six independent ones. Etihad will nominate the board’s vice-chairman, who will preside over board meetings, as well as general meetings, in the chairman’s absence. Additionally, as long as it holds up to 20% of Jet’s share capital, Etihad will have the right to nominate one of its directors as a member of Jet’s audit committee.