Air India's Ashwani Lohani likely to monitor Jet Airways operations

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The board decisions come as the full-service airline struggles to repay its debt of almost Rs 8,000 crore to banks led by State Bank of India. Kevin Knight, a nominee of stakeholder Etihad Airways on the board, has also resigned.

In a stock market filing which also announced the resignation, the company said that banks would lend around $210m to keep it afloat until it starts to sell shares to new investors. Of the debt, Jet needs to repay Rs 1,700 crore by the end of March.

Lenders to form an interim management committee to manage and monitor the daily operations and cash flows.

The board also approved the issue of 11.4 crore equity shares to the lenders upon conversion of Re 1 of the outstanding debt.

Jet Airways was formed by Naresh Goyal and Anita Goyal in 1993 but the story, as of today, the company is saddled with more than 1 billion $ debt. "The option is open for anyone including Naresh Goyal and Etihad to bid for the stake", Kumar said.

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Goyal is presently in London and could address around 23,000 Jet employees upon his exit from there, the report said.

He had headed the national carrier from August 2017 to September 2017 before being moved to the Railway Board as the chairman, from where he retired in December 2018.

Jet Airways, which is saddled with over $1 billion in debt, has grounded almost 40 planes because of non-payment of dues in the past few weeks.

Even as news of Goyal's departure led to a rally in Jet's shares, which ended the day 12.4 percent higher, analysts say there is still a long road ahead.

At present, Jet Airways is operating with just 41 planes out of its fleet of 119 planes after failing to repay rentals. Many of its pilots and other support staff have also not been paid salaries for several months, according to media reports.