With no money and a bleak outlook for the future who would want to stick around to manage Jet Airways? It seems that the answer is no one, despite the critical work necessary to wrap up the company’s accounts. In the past two day three key executives resigned, making the situation even more pressing.
Many assumed that Etihad would come through as a savior, bringing a large cash infusion to get Jet Airways planes back in the sky. That hope proved misguided when the sealed offer was opened revealing a “no-bid” plan. Etihad will not invest a leading share of funds. With no other qualified parties keen to deliver the funding the carrier must begin the process of closing out old accounts and shedding what few assets it still has.
This work requires skilled professionals with experience in the aviation sector and the Indian economic markets. They are relatively thankless jobs, especially considering the limited cash Jet Airways has on hand. And the current executive team wants nothing to do with the efforts.
On Monday CFO and Deputy Chief Executive Amit Agarwal resigned from the company, citing “personal reasons” for his departure. On Tuesday other senior executives made similar moves.
CEO Vinay Dube announced his departure late in the day. Chief People Officer Rahul Taneja reportedly did the same an hour later.
Traditionally senior executives are well paid in the waning days of a company’s operations to make sure that the loose ends are properly tied up. Without that in place for Jet Airways the future is even more bleak. With thousands of employees claiming back pay and significant other unpaid debts around the world – like a $1.1mm unpaid fuel bill in Hong Kong – sorting through the numbers requires a professional team. Jet Airways no longer appears to have that in place.