Jet Airways founder quits board; pilots threaten to quit if not paid

March 25 (UPI) -- The founder of struggling Indian carrier Jet Airways stepped down from the board of directors Monday as the airline tries to arrange funding from lenders.

Pilots have given Jet Airways an ultimatum to pay them or they'll quit on March 31.

Naresh Goyal founded Jet Airways 25 years ago but now the carrier is weighed down by more than $1 billion in debt and it struggles to make debt payments. Many of its aircraft have been grounded, meaning it can't fly many of the routes its been flying. He will also cease being chairman of the company. Goyal's wife Anita also stepped down from the Jet board.

Goyal was once ranked as one of India's 100 richest people and was a pioneer in the country's aviation industry.

Now, the airline is down to 41 aircraft, down from 120 planes. It has offered 50 of its grounded planes to rival SpiceJet.

The airline's pilots, engineers and others haven't been paid since Jan. 1 and only got 12.5 percent of their salaries in December.

A consortium of banks lent Jet Airways money to stay afloat until a resolution is reached. Jet Airways shares surged on the news that the Goyals would be leaving the board and that there's a plan to keep the airline flying.

"The Jet Airways debt saga has entered a decisive phase," said Rajesh Narain Gupta, Managing Partner of law firm SNG & Partners. "Banks have no other option but to pick up the major stake and find a new promoter for the debt-laden airline. However, it remains to be seen how successful banks become in managing an airline, going beyond their core competence."