Naresh Goyal has stepped down as chairman of the cash-strapped Indian airline.
This comes as the airline is closing in on a rescue deal led by state-run banks.
After a board meeting on Monday, it was also decided that Goyal and his wife Anita will step down from the board.
In a statement, the airline said, the banks will convert their debt into equity and take a controlling stake in the airline for a token sum of 1 rupee ($0.0145) and grant a fresh loan of $217.71 million to restore operations.
The banks will also initiate a bidding process to sell their stake in the airline to a new investor by end-June.
The airline's CEO Vinay Dube will continue in his position.
Soon after Goyal's departure, Jet Airways stocks jumped 12 per cent.
US, India unveil interim trade framework, move closer to broad pact
Aldar, Dubai Holding announce next phase of strategic partnership
Dubai regulator fines investment firm AED 1.8 million over compliance issues
UAE, US sign framework to secure critical mineral supply chains
ERC inks agreement to develop teachers housing in Fiji
