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Jet Staff Unlikely to Be Paid Soon as Banks Unable to Make Salary Commitments, Says Airline CEO

In a letter to the employees, Dube said that despite the airline's many attempts to convince the banks to infuse interim funding towards the payment of the pending salaries, the promoters and lessors remain reluctant till the bidding process is over.

News18.com

Updated:April 26, 2019, 6:49 PM IST
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Jet Staff Unlikely to Be Paid Soon as Banks Unable to Make Salary Commitments, Says Airline CEO
Jet Airways employees display placards during a demonstration to make an appeal for saving the cash-starved airline following the temporary shutdown of its operations, at NSCBI Airport in Kolkata. (Image: PTI)

New Delhi: Jet Airways employees will continue to be in the deep-end over salary payments as CEO of the grounded airlines - Vinay Dube, said that banks have been unable to make commitments regarding their remuneration.

In a letter sent to the employees on Friday afternoon, Dube wrote that despite the airline's many attempts to convince the banks to infuse interim funding towards the payment of the pending salaries, the promoters and lessors remain reluctant till the bidding process is over.

"We have told them repeatedly that our employees are facing grave hardships owing to non-payment of their salaries and that if this were to continue any longer, our employees will have no option but to find employment elsewhere. Unfortunately, the banks have said that they are unable to make any salary commitments, if at all, until after the bidding process is complete," he wrote.

Dube goes onto highlight the "irony of the situation" since the board has been advised to preserve the airline's value during the bid process despite the lacks of support from the lenders and promoters.

"...we are simply told that this problem is to be addressed by the company’s shareholders, who should and could have agreed on a Resolution Plan a long time ago."

Pilots, engineers and senior management of the airlines, which has 16,000 direct employees, haven't been paid since January. The airlines had deferred the March salaries of the other employees, earlier this month.

Once India's largest private airline, Jet halted all flight operations indefinitely last week after lenders led by State Bank of India(SBI) declined to extend more funds to keep the carrier going.

The lender's consortium of Jet Airways is currently in the process of selling the airline to recover their dues of over Rs 8,400 crore. SBI Caps, the merchant banking arm of SBI, is currently shortlisting the investors for submitting their financial proposal by April-end.

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