Jet Airways' founder Naresh Goyal has agreed to step down as chairman of the airline's board, a source with direct knowledge of the matter told Reuters on Thursday, as the cash-strapped Indian carrier inches closer to securing a rescue deal.

CNBC-TV18 was the first to report this development on January 15, 2019.

Eithad, which owns a 24 percent stake in Jet Airways, is, however, reticent to provide interim funding of $99 million to Jet Airways, the source said. Jet did not immediately respond to a request for comment.

Saddled with a billion dollars in debt, Jet has defaulted on loans and has not paid pilots, leasing firms and suppliers for months. Lessors have grounded more than a dozen of its planes pending payment of dues.

First Published:Feb 28, 2019 7:42 PM IST