Shake-up at top Jet management as CEO Kardassis quits

Within two months of Jet Airways clinching a deal to sell 24 per cent stake with the Abu Dhabi- based Etihad Airways, its chief executive Nikos Kardassis has resigned, confirming reports that he was on his way out. Jet, in a regulatory filing today, said Kardassis has resigned, effective June 5, after a five-year stint with the airline and chief operating officer Capt Hameed Ali has been appointed as interim chief executive till the board finds a suitable candidate.

The Naresh Goyal-led airline did not offer any reason for the departure, nor could Kardassis be reached for comment. This was the second innings for Kardassis with Jet. Ever since the airline clinched the deal with Etihad on April 24, whereby it agreed to sell 24 per cent stake for Rs 2,042 crore, the industry was abuzz with speculation that Kardassis was on his way out.

Etihad reportedly demanded a change in the management under the deal, including removal of Goel's wife from the airline's board. Under the sale agreement, the terms of which are being reworked following SEBI's objections, the Arab carrier will get three board members, including the CEO. Kardassis returned to Jet on October 15, 2009 as acting CEO after Wolfgang Prock-Schauer quit, and was appointed CEO from May 20, 2010.

Kardassis' first term with Jet started in 1994 and lasted till 1999 and he was instrumental in the restructuring, cost/network management of the airline. For the quarter ended March, Jet reported deeper losses at Rs 495.53 crore against a net loss of Rs 298.12 crore for the same period year-ago.

Total income from operations declined to Rs 3,922 crore in the March quarter from Rs 4,041.61 crore in the year-ago period. For the full year, the second largest airline improved its bottomlines by massively narrowing the losses to Rs 485.5 crore against a net loss of Rs 1,236 crore in FY12.