The founder of cash-strapped Indian airline Jet Airways has stepped down as chairman of the company.
Naresh Goyal’s resignation will likely pave the way for potential investors to save India’s oldest private carrier.
They were held back by Mr Goyal’s reluctance to give up control of the company, reports say.
Jet’s debt exceeds $1bn (£750m) and the airline has grounded some flights as it is struggling to pay employees, suppliers and leasing companies.
Within minutes of Monday’s announcement, the company’s stock jumped 12%.
In a stock market filing which also announced the resignation, the company said that banks would lend around $210m to keep it afloat until it starts to sell shares to new investors.
In recent weeks, it had grounded more than two-thirds of the 119 aircraft in its fleet. Thousands of flights were cancelled, affecting passengers flying on both international and domestic routes.
A pilots’ organisation had also warned that its members would stop flying for the carrier if their salaries were not paid by the end of March.