Jet Airways chairman Naresh Goel has given into his forthcoming partner Etihad Airways’ desire to have a CEO of its choice by getting his long-time associate and chief executive Nikos Kardassis, who played a key role in making the airline to the place where it is today, out unceremoniously.
The move indicates the forthcoming shake-up in the nation’s second largest airline as and when its 24 percent deal with Etihad goes through many web of the regulatory hurdles. The airline in an exchange filing to the BSE yesterday said that Kardassis resigned with effect from June 5, but did not attribute any reasons for the same. It also said chief operating officer Capt Hameed Ali will be the interim chief executive till the board finds out a suitable candidate, which may not happen before the Rs 2,042-crore deal with Abu Dhabi carrier gets the Sebi go-ahead.
Ever since Goel, who was a vocal critic of the FDI policy of the government, but finally became the airline clinched a stake sale deal with Etihad in the last week of April, under which it agreed to sell 24 per cent stake, the industry was abuzz with speculation that Kardassis was on his way out. Speculation came after the details of the deal came in wherein Etihad reportedly demanded a change in the management, including removal of Goel's wife from the airline's board. Under the sale agreement, the terms of which are being reworked following Sebi objections, the Arab carrier will get three board members, including the CEO.
Jet became the first domestic carrier to sew up a partnership with a foreign carrier after the foreign holding limit in aviation was upped to 49 per cent last September. "The board recognises the significant contributions made by Kardassis over the past five years and greatly appreciates his efforts," Goel said in the statement. Kardassis returned to Jet on October 15, 2009 as acting CEO after Wolfgang Prock-Schauer quit to join the England-based carrier bmi, and was appointed CEO from May 20, 2010.Kardassis', whose first term with Jet started in 1994 and lasted till 1999, was instrumental in the restructuring, cost/network management of the airline. He had also served as senior vice-president, the Americas for Jet, prior to his appointment as the CEO.
Kardassis began his career with TWA holding various finance and operational positions. He joined Merrill Lynch from General Electric where he served as president for GECAT, according to his profile given on the Newsweek website. 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.
