Jet Airways share skids over 4% as former CEO Nikos Kardassis quits

Jet Airways share skids over 4% as former CEO Nikos Kardassis quits

Shares of Jet Airways (India) tumbled over 4 per cent on Monday after media report suggested that Nikos Kardassis, the former CEO of beleaguered airline, who made a comeback to the carrier in an advisory role, has once again left the company.

Jet Airways share skids over 4% as former CEO Nikos Kardassis quits

Weighed down by the development, shares of Naresh Goyal-led company declined as much as 4.55 per cent to touch an intra-day low of Rs 248.10 apiece on the Bombay Stock Exchange, after making negative opening at Rs 253.80 against previous closing of Rs 259.95.

On the National Stock Exchange, stocks of the company were trading at Rs 250.30, down 3.69 per cent.

The Greek-American aviation veteran, the two-time chief executive officer of Jet Airways, had returned to the airline as an advisory role this year and was tasked to turnaround the cash-strapped airline.

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

Amid persisting financial turbulence, the airline has been implementing a turnaround plan, which includes both cost saving and revenue enhancement.

The company is going through tough phase after it reported three back-to-back quarterly losses and a net debt of Rs 8,052 crore as on September 30.

In a separate development, State bank of India, the country’s largest lender, has ordered a forensic audit of the company, according to PTI report. SBI, which is the lead banker to Jet Airways’ over Rs 8,000-crore loans, has mandated Ernst & Young to conduct a forensic audit of the airline’s books, the agency quoted as saying.

The exchange has also sought clarification from Jet Airways (India) with reference to news.

Meanwhile, the benchmark index BSE Sensex was trading at 36,210.79, up 247.86 per cent, or by 0.69 per cent.

source: businesstoday