Saddled with more than $1 billion of debt, Jet is struggling to stay afloat. It has delayed payments to banks, suppliers, pilots and lessors - some of which have forced the airline to ground as many as 40 planes.
Jet has survived a near-death experience once before; in 2013, Abu Dhabi's Etihad Airways injected $600 million of capital for a 24 percent stake in the airline, three London Heathrow slots and a majority share in Jet's frequent flyer programme. The infusion helped Jet pare down debt and fight growing domestic competition, reported Reuters.
The government has asked state-run banks, led by SBI, to rescue Jet without pushing it into bankruptcy, seeking to avert thousands of job losses weeks before a general election. The reports of Goyal's departure led to a rally in Jet's shares of more than 12 percent.
(With inputs from Reuters and PTI)