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Jet Airways slips 4% as former CEO Nikos Kardassis leaves firm

Shares of Jet Airways fell as much as 4 per cent on BSE after news reports suggested Nikos Kardassis, the former CEO, has parted ways with it

SI Reporter  |  New Delhi 

Last month, Jet had laid off 20 employees, including senior-level executives. Prior to that, it had reportedly asked 15 managerial-level staff to leave

Shares of Jet Airways fell as much as 4 per cent on BSE in early deals on Monday after news reports suggested Nikos Kardassis, the former CEO of private airline, who made a comeback to the carrier in an advisory role and was tasked to turnaround the cash-strapped airline, has once again parted ways with it.

The former chief executive parted ways with the airline after Naresh Goyal initiated discussions with his investment partner Etihad Airways for further stake sale to garner funds, said a PTI report.

The UAE national carrier Etihad Airways holds 24 per cent stake in Jet Airways, which it acquired in 2013.

The Greek-American aviation veteran in his third come back to the Naresh Goyal-controlled Jet Airways in May this year was roped-in to revive the fortunes of the full-service carrier following its dismal financial performance since January this year.

In another development, country's largest lender SBI has ordered a "forensic" audit of Jet Airways books between April 2014 and March 2018 for alleged financial irregularities.

Last week, credit rating agency ICRA downgraded Jet Airways' long-term ratings from 'B' to 'C', the second such action by it since October. The short-term ratings have, however, been reaffirmed to 'A4'.

“The rating downgrade considers delays in the implementation of the proposed liquidity initiatives by the management, further aggravating its liquidity, as reflected in the delays in employee salary payments and lease rental payments to the aircraft lessors”, ICRA said.

At 9:50 am, the shares of Jet Airways were trading at Rs 251.70, down 3.17 per cent against a rise of 0.59 per cent in S&P BSE Sensex.

First Published: Mon, December 17 2018. 10:21 IST
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