Home / Companies / News /  Jet staff ask govt to help solve issues

An employees’ group of Jet Airways (India) Ltd has sought the intervention of newly appointed civil aviation minister Jyotiraditya Scindia for resolving issues of employment under the new owners of the airline and clearance of social security dues that have accumulated under the previous management of the airline.

The All-India Jet Airways’ Officers and Staff Association, which is affiliated to National Front of India Trade Unions, said in a letter addressed to Scindia on 27 July that it was shocked to see the paltry salary dues offered by the new owners of the airline, about 52 crore, which is a minuscule amount compared with the original claims of employees.

“A large number of employees continue to be on the payroll of the company (Jet Airways) who have indicated complete uncertainty in respect of their continued employment as they believe that they would contribute to the success of the revived entity of the successful resolution applicant," the letter said.

A copy of the letter has been reviewed by Mint.

“If the airline has to take off into the skies under a revived management, it is imperative that employee issues are addressed sincerely and genuinely...," the association said in its letter.

“We trust that you would take up our request at the earliest and invite us for an audience with you along with a few of our representatives," it said.

The committee of creditors of the grounded airline, led by State Bank of India, had approved the resolution plan submitted by a consortium of UK’s Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan in October 2020, to restart Jet Airways.

The airline has been grounded since April 2019 because of bankruptcy under its previous promoter Naresh Goyal.

The Kalrock-Jalan consortium has proposed to invest 600 crore in the first two years in the grounded airline to repay creditors and acquire an 89.79% stake in the carrier.

It has also proposed to pay 131 crore, 193 crore, and 259 crore at the end of the third, fourth and fifth year, respectively, to financial creditors from the airline’s cash flows.

Overall, the consortium hopes to repay 1,183 crore to creditors over five years, which would include collections from asset sale proceeds and cash flows.

The Mumbai bench of the National Company Law Tribunal had in June approved the resolution plan submitted by the Kalrock Capital and Murari Lal Jalan consortium subject to further approvals, to restart Jet Airways.

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